CA Hardik Bunha (self) (2121 Points)
22 November 2012(1) Agriculture land taken into consideration while compute wealth tax?
(2) Fixed deposite in bank taken in to consideration while compute wealth tax?
(3) Loans and advance taken into consideration while compute wealth tax?
@VaibhavJ
(Believe!! Live your dreams!)
(33516 Points)
Replied 22 November 2012
HI
(1) Agriculture land taken into consideration while compute wealth tax?
NO, Not a Wealth U/s 2(e)
(2) Fixed deposite in bank taken in to consideration while compute wealth tax?
NO, Any amount deposited in Bank & shown in books not an Asset
CA Hardik Bunha
(self)
(2121 Points)
Replied 22 November 2012
(1) what is your opinion if agriculture land is situated within 8 km from municipal jurisdiction?
(2) you wrote for loans and advances that "Its is to be taken only if asset in respect of which it is Taken is not exempted.
My friend it is loans and advances not unsecured loan.
Ravi Kumar Mahaur
(CA-FINAL)
(202 Points)
Replied 22 November 2012
1) only urban agriculture land is an asset under wealth tax act and liable to wealth tax. however, an individual can get a deduction in respect of such land u/s 5 of wealth tax act.
2) Fixed deposit is not an asset . Therefore is not liable to wealth tax.
3) Loans and advances directly related to the asset (asset which is liable to wealth tax) is liable to get deduction under section 5 of wealth tax act.
Anbuselvam
(CMA Final Pursuing)
(240 Points)
Replied 29 November 2012
A farmhouse situated within 25 kilometers from the local limits of a local authority is treated as an asset under wealth tax act.
Urban Land Sec 2(ea) (v)
Urban land is treated as an “asset” and urban land means land situated in any area which is comprised within the jurisdiction of local authority
CAclubindia
