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Is private trust property taxable under wealth tax act?

CA NEHA AGARWAL (Practise) (227 Points)

11 June 2013

Hello everybody,

Please guide me that whether property of family trust is taxable under wealth tax. Please support your reply with source of information.

Its URGENT so please reply as soon as possible.

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4 Replies

Ankit (CA, CS) (3064 Points)
Replied 11 June 2013

Dear Neha,

WT applies only to Individuals, HUF and company. hence, in your case, according to me, WT does not apply.

- Ankit

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Rahul Jalan (Chartered Accountant) (121 Points)
Replied 11 June 2013

Only Charitable or religious trusts are exempt from wealth tax u/s 5(i) of wealth tax act which reads as under "Wealth tax shall not be payable on any property held under trust or other legal obligation for any PUBLIC purpose of a charitable or religious nature in India"... So family (private) trusts are not covered under such exemption and same is liable to wealth tax.. It may also be noted that the trust is assessable as an individual and other exemptions u/s 5 ( which are allowed to an individual) are available to trust...