https://www.taxtmi.com/caselaws?id=61399 Under section 2(m)(ii) of the Wealth-tax Act, a debt is deductible only if it is incurred in relation to property not chargeable to wealth-tax. Where a loan is used for construction of a taxable house, the borrowing remains deductible in computing net wealth unless it is shown to be directly secured against a non-taxable asset. On the stated facts, the insurance policy was treated only as collateral, not as the principal security for the loan, so the deduction was allowed against the taxable value of the house. en-us Fri, 31 Jul 1987 00:00:00 +0530 Wed, 12 Jan 2011 15:12:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=61399 Under section 2(m)(ii) of the Wealth-tax Act, a debt is deductible only if it is incurred in relation to property not chargeable to wealth-tax. Where a loan is used for construction of a taxable house, the borrowing remains deductible in computing net wealth unless it is shown to be directly secured against a non-taxable asset. On the stated facts, the insurance policy was treated only as collateral, not as the principal security for the loan, so the deduction was allowed against the taxable value of the house. Case-Laws Wealth-tax Fri, 31 Jul 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=61399