Suraj S (Audit Executive) (335 Points)
28 April 2011can somebody clarify me the following prob on wealth tax? its urgent plzzzz.......
one of our client is having a huge land in which a factory is also situated. more than half of the land is vacant and the factory is only situated in a small portion.i want 2 know whether wealth tax would be levied on such land?
CA AMANPREET SINGH
(Chartered Accountant)
(284 Points)
Replied 28 April 2011
Once a building is Constructed on a Land it NO MORE remains land under Wealth Tax Act,
Thus no question of taxing Land
Suraj S
(Audit Executive)
(335 Points)
Replied 29 April 2011
but sir i heard that factory building is exempt as per wealth tax act as factory can be a building used for
business purpose and also only the land appurtenant thereto the building would be exempt. but in the
case here the land is a rural land in which this factory is situated. So i wanted to know whether the land
in which this factory is located would be exempted.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 29 April 2011
Suraj S
(Audit Executive)
(335 Points)
Replied 29 April 2011
Ok thank u rashid sir.... but i am still confused about the land in which this factory building stands...
can it be claimed as exemption as a rural land???
CAclubindia
