TaxTMI 
TaxTMI 
Wealth tax applicability
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....ealth tax applicability<br> Query (Issue) Started By: - MADHUSUDHAN B Dated:- 29-7-2009 Last Reply Date:- 4-8-2009 Other Topics<br>Got 2 Replies<br>Indian Laws<br>I HAVE URBAN LAND OF 25 GROUND'S PURCHASED 3 YEARS BACK, IN THIS PROPERTY PRESENTLY I AM RUNNING VEHICLE STAND(with Out ANY BUILDING ) WITH MONTHLY INCOME OF AVERAGE Rs 75,000/- PRESENTLY PROPERTY VALUE IS Rs12,00,00,000/- PLEASE TELL ME....
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.... ANY BODY ABOUT MY WEALTH TAX APPLICABILITY Reply By Surender Gupta: The Reply: A plain reading of sub-clause(i) of cluase (ea) of section 2 i.e. 2(ea)(i) of Wealth Tax Act, 1957 reveals that any "any building or land appurtenant thereto" is referred as house. Further sub-clause (v) of clause (ea) of section 2 refers to as "urban land". Now the question is whether the land used for vehicle stand....
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.... would constitute as house or not? In my view, the answer is No. Since there is no building is in place. I borrow my view from the decision of Bombay High Court reported in 2009 -TMI - 32465 - BOMBAY HIGH COURT [TMI ID = 32465] in the matter of Motwane Manufacturing Co. Pvt. Ltd. Versus Commissioner of Wealth-tax Mumbai. Therefore, the value of land would remain taxable as part of gross wealth. R....
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....eply By DEV KUMAR KOTHARI: The Reply: There are possibilities of exemption from wealth tax on proper appraisal and presentation of facts.Property in nature of a commercial establishment or complexes can be exempted. Poperty (urban land) held as stock-in-trade ( meant for sale at proper time)can be exempt for ten years. Depending on nature of vehicle stand and boundaries, there may be exemption.<br....
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