20 February 2010
Bank balance is not an asset for the purpose of calculating Wealth Tax . The provision given in Wealth Tax Act is as follows >
Cash in hand, in excess of fifty thousand rupees, of individuals and Hindu undivided families and in the case of other persons any amount not recorded in the books of account.
will u do one favour... what is the treatment for factory building while calculating net wealth under wealth tax Act......? is it similar to guest house....?
20 February 2010
In section 2(ea) of the Wealth Tax Act, the assets which will be considered for the purpose of wealth tax is defined.
For your query whether the factory building is would be considered as an asset or not for purpose of the calculation of wealth tax. I would like to say that FACTORY BUILDING would be considered as an asset for the purpose of calculation of wealth tax provided the building occupied for purpose of carrrying on business or profession is not carried on by owner.
But it would not be covered in urban land as you said its factory BUILDING not land. If it would be land, and lying idle from two years from the date of acquision.
CAclubindia
