Whether wealth tax is levied on commercial flat not using for business?

[Anup Kumar Grover]

A commercial flat not using for business, whether liable to wealth tax in year, earlier it was let out.

[CAGOPALJI AGRAWAL]

If it is located in a commercial complex, it would be covered under exception 5 hence not an asset. Normally, flat is treated as residential, if it is commercial, then it would be known as complex, office, shop,showroom etc.

[DEV KUMAR KOTHARI]

use as on valuation date is relevant. use can be by ownere or by tenat. if as on the valuation date office space is used for business or profession, then it will be exempt. The facts must be clear and convincing. Shri Gopal ji has rightly pointed out that if the office space / (described by you as commercial flat) is in a commercial complex, then also it is exempt irrespective of use or not use.

AI Summary

Commercial Flats in Complexes Exempt from Wealth Tax Regardless of Use Under Exception 5; Valuation Date Use Crucial A discussion on whether a commercial flat not used for business is subject to wealth tax received two replies. One respondent clarified that if the flat is located in a commercial complex, it falls under exception 5 and is not considered an asset for wealth tax purposes. The other respondent emphasized the importance of the flat's use on the valuation date, stating that if it is used for business or profession, it is exempt from wealth tax. Both agreed that a commercial flat in a commercial complex is exempt from wealth tax, regardless of its use.