Wealth tax applicability

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..... I HAVE URBAN LAND OF 25 GROUND'S PURCHASED 3 YEARS BACK, IN THIS PROPERTY PRESENTLY I AM RUNNING VEHICLE STAND(with Out ANY BUILDING ) WITH MONTHLY INCOME OF AVERAGE Rs 75,000/- PRESENTLY PROPERTY VALUE IS Rs12,00,00,000/- PLEASE TELL ME ANY BODY ABOUT MY WEALTH TAX APPLICABILITY - Reply By Surender Gupta - The Reply = A plain reading of sub-clause(i) of cluase (ea) of section 2 i.e. 2(ea)(i) .....

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..... of Wealth Tax Act, 1957 reveals that any "any building or land appurtenant thereto" is referred as house. Further sub-clause (v) of clause (ea) of section 2 refers to as "urban land". Now the question is whether the land used for vehicle stand would constitute as house or not? In my view, the answer is No. Since there is no building is in place. I borrow my view from the decision of Bombay High .....

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..... Court reported in 2009 -TMI - 32465 - BOMBAY HIGH COURT [TMI ID = 32465] in the matter of Motwane Manufacturing Co. Pvt. Ltd. Versus Commissioner of Wealth-tax Mumbai. Therefore, the value of land would remain taxable as part of gross wealth. - Reply By DEV KUMAR KOTHARI - The Reply = There are possibilities of exemption from wealth tax on proper appraisal and presentation of facts.Property i .....

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..... n nature of a commercial establishment or complexes can be exempted. Poperty (urban land) held as stock-in-trade ( meant for sale at proper time)can be exempt for ten years. Depending on nature of vehicle stand and boundaries, there may be exemption. - Wealth tax applicability - Query Started By: - MADHUSUDHAN B Dated:- 29-7-2009 Other Topics - Got 2 Replies - Indian Laws - Discussion Forum - .....

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..... Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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