Deductibility of debts secured on exempt property limited: only debt attributable to includible property may be deducted. Debts secured on or incurred in relation to property not chargeable to wealth tax, including asset classes exempt under the Act, are not deductible in computing net wealth. For partly exempt assets, the deduction must be apportioned in the assessee's favour so that only the portion of the debt attributable to the includible value of the property may be deducted.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Deductibility of debts secured on exempt property limited: only debt attributable to includible property may be deducted.
Debts secured on or incurred in relation to property not chargeable to wealth tax, including asset classes exempt under the Act, are not deductible in computing net wealth. For partly exempt assets, the deduction must be apportioned in the assessee's favour so that only the portion of the debt attributable to the includible value of the property may be deducted.
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