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URGENT!!! query regarding wealth tax URGENT!!!

sravan (Audit & Compliance officer ) (66 Points)

06 May 2010

An assessee who owns two houses both were self occupied by him for the previous year 2008-09.For the same year he has claimed one house as self occupied and for another house he admitted notional income paid taxes and has filed the return.Now my query is regarding wealth tax is the asset for which notional income provided taxable under wealth tax???As only one self occupied house is allowed under wealth tax act and the other is not let-out but taxed under IT act by admitting notional income. Pls help very urgent !!!

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Amir (Learner) (4016 Points)
Replied 06 May 2010

Dear Sravan,

I think you mean to say that 'whether the same house is to be made taxable under wealth tax, which has been considered as deemed let out under Income tax" {Pls reply if u meant something else}

Answer is "NO", both acts are different & assessee has the option to choose any house...

But in most of the cases you will find that it is more beneficial for the assesee to claim same house as exempt under both the acts beacuse the computation provisions are based on Fair Rent Value or Municipal Valuation

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sravan (Audit & Compliance officer ) (66 Points)
Replied 06 May 2010

thanks Amir for a very fast reply. You are right amir .My doubt was since the assessee admitted a notional income and paid itax ( as the house becomes a deemed letout property ) has he got to pay tax under wtax too??? Wtax's objective is to tax the idle assets.this asset is already taxed under Itax .any views on this pls!! I want some clarity whether the 2nd house which was a deemed letout property taxable under wtax act if not taxable pls help me with some judgements in this regard..thank u in advance ...