Wealth tax liability, Other Topics

[ratan rathi]

Whether wealth tax liability arises if agri land owned by assessee is situated within muncipal(urban area) area. If yes, whether agriculture is to be actually done or Non converted land is enough.Further cerain land are barren land agri -operation on the same is not profitable, even then agri activity is compulsory for exemption.Please clarify.

Posts / Replies

[Surender Gupta]

As per the provisions of the wealth tax act, an urban land is subject to tax. However, if construction is not permitted, such land is not taxable. Mere use in agriculture can not debar such asset from wealth tax.

[ratan rathi]

Is it not an agri land on which construction is not permissible hence not liable to wealth tax. Agri land in this way may get exemption from wealth tax.Pls confirm as some court decisons are against the view.