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Land held by company

ADITYA YADAV (ARTICLED ASST.) (70 Points)

06 July 2013

hai

The company owns a land of few acres in which a building was built if the company shows rent for the building can the land and building be exempt ??????

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4 Replies

CA CS Roshan Begrajka (Chartered Accountants) (267 Points)
Replied 06 July 2013

land is exempt from wealth tax but building is not exempt from wealth tax.

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ADITYA YADAV (ARTICLED ASST.) (70 Points)
Replied 06 July 2013

how can say that land is exempt though it is not agricuture land ?????????? if he is not using that land ????

CA CS Roshan Begrajka (Chartered Accountants) (267 Points)
Replied 06 July 2013

urban land mean land situated

1)in any area which is comprised with in the jurisdiction of lacal municipal authority and population is not less than 10000 according to last sensus report

2) situated in such area which is eight km from the local limit of munipilality

but does not include any urban land which construction is not permissible by any other law.

if the above criteria is fullfill then urban land is taxable under wealth tax act whether it is use by assessee or not and if it shown in year end balance sheet then it is taxable.

Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 06 July 2013

yes he is right.even in income tax act also for capital gain purpose,they take the above criteria.they doesnot concern about wheather it is used for agricultural purposes unless fall under above criteria.so even capital gain exemption u/s 54f is concern about urban agricultural land wheather it is used for agricultural purpose or not but not concern about rural agriculture land wheather it is used for agriculture purpose or not as by nature it will not fall under category of capital asset u/s 2(14)