Wealth Tax Simple Definition

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 February 2010 One of my assessee having air conditioners, TVS, ACs, Washing Machine, Motor Cycle, 1 Residential Bunglow with Factory Land owner with SDRs, NSC, PPF in his balance sheet.
Query1: 1 residential bunglow is exempted if it's valuation is whatsoever?
Query:2 Is movable properties as above also being calculated while WT?
Can anybody explain the sections with clear understanding of WT what in or out?
NILESH H GAJJAR
9825114973
Rohan's Accounting Services

Rahul Gupta

Rahul Gupta (Expert)
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08 February 2010 In wealth Tax, only the assets covered in the definitions are covered.(6 Assets) (Given below).
Also, The house occupied by the person for his residence is exempt from Wealth Tax as well the movables described above will not form part while calulating the wealth of the assesse.

Definitions of Assets >
Section 2(ea) "assets", in relation to the assessment year commencing on the 1st day of April, 1993, or any subsequent assessment year, means â€“
(i) Any building or land appurtenant thereto (hereinafter referred to as "HOUSE"), whether used for residential or commercial purposes or for the purpose of maintaining a guest house or otherwise including a farm house situated within twenty-five kilometres from local limits of any municipality (whether known as Municipality, Municipalilty Corporation or by any other name) or a Cantonment Board, but does not include -
(1) a house meant exclusively for residential purposes and which is allotted by a company to an employee or an officer or a director who is in whole-time employment, having a gross annual salary of less than five lakh rupees;
(2) any house for residential or commercial purposes which forms part of stock-in-trade;
(3) any house which the assessee may occupy for the purposes of any business or profession carried on by him;
(4) any residential property that has been let-out for a minimum period of three hundred days in the previous year;
(5) any property in the nature of commercial establishments or complexes;
(ii) MOTOR CARS (other than those used by the assessee in the business of running them on hire or as stock-in-trade);
(iii) JEWELLERY, bullion, furniture, utensils or any other article made wholly or partly of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals :
Provided that where any of the said assets is used by the assessee as stock-in-trade, such assest shall be deemed as excluded from the assets specified in this sub-clause;
(iv) YACHTS, BOATS & AIRCRAFTS (other than those used by the assessee for commercial purposes);
(v) URBAN LAND;
(vi) CASH IN HAND , in EXCESS OF RS.50,000 , of individuals and Hindu undivided families and in the case of other persons any amount not recorded in the books of account.