agricultural land situated in urban area is liable for wealth tax, Other Topics

[alex thomas theruvath]

whether agricutural land situated in urban area is exempt from wealth tax

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[CA Rachit Agarwal]

As per Section 2(ea), Urban Land comes within the scope of assets and hence taxable.

However as per Section 2(e)(1), the agricultural land is beyond the scope of the assets and hence not taxable.

  ¹³[Provided further that in relation to the assessment year commencing on the 1st day of April, 1983 or any subsequent as­sessment year, this sub-clause shall have effect subject to the modification that for item (i) thereof, the following item shall be substituted, namely :—

"(i)(a)  agricultural land and growing crops (including fruits on trees), grass or standing trees on such land ;