wealth tax whether one house is exempted under welath tax

[NEERAJ BHUTORIA]

i am having a house for residentail purpose whose valuation is Rs 1400000/- in salt lake kolkata. i want to know whether one house (850 sq foot)is exemoted is exemoted under wealth tax or the same is to be inclused in wealth tax calculations

[Darshan Jain]

As per section 5(vi) of the WTA,1957 wealth tax shall not be payable on any one house or part of a house or a plot of land belonging to an individual or a Hindu undivided family. This exemption is available irrespective of the valuation. The 500 Sq Mtr restriction is applicable only for an asset being a plot of land. In your case, since its a residential house the proviso to s.5(vi) is again not applicable and in my opinion you could very well claim exemption..

[DEV KUMAR KOTHARI]

I agree with Shri DARSHAN JAIN, one residential house in case of individual and HUF is fully exempt. Regarding correct section/ subsection etc. please see latest WT Act on this website to reconfirm and recheck.

AI Summary

Wealth tax one-house exemption: a single residential house held by an individual or HUF remains exempt despite its valuation. The statutory provision grants an exemption for one house or part of a house or a plot of land belonging to an individual or HUF, and that exemption is available irrespective of the monetary valuation of the house; the 500 square metre restriction applies only to plots of land and does not remove the exemption for a residential house.