Wealth tax liability

[ratan rathi]

Whether wealth tax liability arises if agri land owned by assessee is situated within muncipal(urban area) area. If yes, whether agriculture is to be actually done or Non converted land is enough.Further cerain land are barren land agri -operation on the same is not profitable, even then agri activity is compulsory for exemption.Please clarify.

AI Summary

Debate on Wealth Tax: Is Agricultural Land in Urban Areas Taxable? Conflicting Views on Necessary Agricultural Activity. A discussion on the applicability of wealth tax on agricultural land located within urban areas. The initial query questions whether owning agricultural land in a municipal area incurs wealth tax liability, and if agricultural activity is necessary for exemption. One response clarifies that urban land is taxable unless construction is prohibited, and agricultural use alone does not exempt it from wealth tax. Another participant argues that agricultural land where construction is not allowed should be exempt, though acknowledges conflicting court decisions on the matter.