TaxTMI 
TaxTMI 
TaxTMI 
Liability of wealth tax
CA.ANCHAL RASTOGI
A company has been alotted a land by a local authority to construct a shopping mall. A company incorporate a B company and trf. land to new company to construct mall. B company incorporated in F Y 2006-2007 and construction of mall started in f y 2007-2008. my query is that: whether the company B is liable for wealth tax on land for the f y 2006-2007 or not? there are if any case law. pl provided thanx
Is Company B Liable for Wealth Tax on Land in 2006-2007? Depends on Stock-in-Trade vs. Capital Asset Classification. A company was allotted land by a local authority to construct a shopping mall. It transferred the land to a newly incorporated company, B, in the fiscal year 2006-2007, with construction starting in 2007-2008. The query asks whether company B is liable for wealth tax on the land for the fiscal year 2006-2007. The response suggests that if the land is considered stock-in-trade (SIT), it is not taxable, but if it is considered a capital asset, it is taxable. (AI Summary)