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
Wealth tax liability depends on asset characterisation; classification as SIT avoids tax, as capital asset triggers tax. A company transferred municipal allotted land to a new subsidiary incorporated in 2006-07 to develop a mall. The forum reply states that Wealth tax liability depends on the asset's characterisation: if treated as the class referred to as 'SIT' it is not taxable, but if treated as a capital asset it is taxable, so classification determines liability for 2006-07. (AI Summary)