22 July 2008
Whether a Guest House (which is the company's property) leased out to a third party be considered as an asset under the Wealth Tax Act? The definition of asset u/s 2(ea) of the act excludes "a residential property leased out for more than 300 days during the year" from the definition of asset. Whether a Guest House should be considered a residential property and be excluded if it is let out for more than 300 days or should it be considered a commercial property and be included as an asset?
23 July 2008
If it is a let out property for a minimum period of 300 days in the relevant previous year for residential purposes it is not falling within the definition of asset. Alternatively if it is meant for the residential purposes of a wholetime employee of the company drawing salary less than Rs 5 lakhs per annum, then also it is exempt.
CAclubindia
