https://www.taxtmi.com/caselaws?id=36908 Debts secured on property exempt from wealth-tax are not deductible under section 2(m)(ii) of the Wealth-tax Act, even if the borrowed funds were later used to acquire taxable assets. The exemption under section 5(1)(iv) applies to the house property as an exempt asset within the statutory ceiling, and the debt remains excluded because it is secured on, or incurred in relation to, property on which wealth-tax is not chargeable. The same construction applies to a loan secured on a life insurance policy. Rule 2E cannot expand the statutory deduction and does not override the exclusion created by sections 2(m), 5 and 7. en-us Thu, 10 Jan 1980 00:00:00 +0530 Thu, 25 Mar 2010 12:42:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36908 Debts secured on property exempt from wealth-tax are not deductible under section 2(m)(ii) of the Wealth-tax Act, even if the borrowed funds were later used to acquire taxable assets. The exemption under section 5(1)(iv) applies to the house property as an exempt asset within the statutory ceiling, and the debt remains excluded because it is secured on, or incurred in relation to, property on which wealth-tax is not chargeable. The same construction applies to a loan secured on a life insurance policy. Rule 2E cannot expand the statutory deduction and does not override the exclusion created by sections 2(m), 5 and 7. Case-Laws Wealth-tax Thu, 10 Jan 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36908