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wealth tax

Ameet (L) (1678 Points)

12 July 2010

whether office building and motor car used in business liable for welath tax ? kindly provide supporting or reference ?

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3 Replies

Amir (Learner) (4016 Points)
Replied 12 July 2010

HI Ameet,

Office building is not an asset u/s 2(ea) -As definition of House has following as exception amongst others -

(3) any house which the assessee may occupy for the purposes of any business or profession carried on by him;

Motor car even though used for official purposes will be treated as an asset except than those used by the assessee in the business of running them on hire or as stock-in-trade

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Ameet (L) (1678 Points)
Replied 12 July 2010

What about guest house and rent free accomodation given to employees ?

Amir (Learner) (4016 Points)
Replied 12 July 2010

Dear Ameet,

Guest House & accommodation given to employees shall be considered as Taxable asset except -

- 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;

- any residential property that has been let-out for a minimum period of three hundred days in the previous year;