Wealth tax - Proprietorship concern

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If a proprietorship concern has given its properties on Rent to a Company, then whether wealth Tax will be applicable on it or not, in case:- 1) it's business is of letting out of properties 2) it is carrying on Warehousing business and renting properties is incidental to it.

AI Summary

Wealth Tax Applicability on Rented Properties: Clarification Under Section 2(ea) of Wealth Tax Act, 1957 for Business Use. A query was raised regarding the applicability of wealth tax on properties owned by a proprietorship concern when rented to a company. The concern involves two scenarios: if the business is primarily letting out properties, or if it operates a warehousing business with incidental property rentals. The response referenced Section 2(ea) of the Wealth Tax Act, 1957, clarifying that properties used as stock-in-trade or commercial establishments, as well as properties rented for at least 300 days in the prior year, are excluded from wealth tax.