31 March 2014
Dear Sir, please explain, as per exempted assets under section 5(vi)of wealth tax Act( i.e. A house or part of house or plot of land upto 500 sq. meters)
is Urban Land comes under the definition of plot of land?
is Guest house, Farm house comes under the definiton of House?
for example if assesse (individual) has only A guest house and an Urban Land. then whether he can avail any exemption ?
31 March 2014
Urban land as well as guest house & farm house all are covered under wealth tax. But there few condition to it. farm house is covered if it is located within 25 Km of the municipal limits. For guest house there is no limit. In case of urban land, if it is held as the stock then it is not an asset uptill 10yrs from date of acquisition later on it will taxed. also if the urban land unused and is held for industrial purpose then for 2 yrs it is not an asset later on it will be taxed.
CAclubindia
