Exemption from wealth tax to agricultural land situated in urban area.
1 Finance Act, 1992 amended the provisions of Wealth-tax Act with effect from 1st April, 1993 to provide that wealth tax shall be levied only on certain specified assets. The definition of assets on which wealth tax is leviable inter alia includes urban land. As per this definition urban land means land situated in the jurisdiction of municipality or cantonment board or land situated in notified area. However, certain categories of urban land such as land on which construction of a building is not permissible, land held for industrial purpose, land held as stock in trade, have been excluded from the definition of urban land. Normally on agricultural land, either no construction is allowed or allowed only for a specific purpose (mainly for agricultural needs), but no specific exemption has been provided to the agricultural land. Recently it has been held by the Hon’ble Supreme Court that agricultural land situated in urban area is liable for wealth tax. As the wealth tax is levied only on unproductive assets, there was no intention to levy wealth tax on the agricultural land which cannot be termed as unproductive assets.
2 In view of the above, the definition of urban land in the Wealth-tax Act, 1957 has been amended vide Finance Act, 2013 to specifically provide that wealth tax is not leviable on urban land which is,
(i) classified as agricultural land in the records of the Government; and
(ii) used for agricultural purposes.
3 Applicability: – This amendment takes effect retrospectively from 1st April, 1993.
Hi Sir,
Whether wealth tax is applicable on land situated in urban area but which is un contructible(where construction is not possible because of uneven land or valley or hill type)
whene Urban land is not treated as asset under Wealth Tax Act?
please answer in details
R/Sir iam Devi
Sub: Agree culture Lands for Industries (SRI CITY) purpose – Regard.
YSR Govt taken Agree culture lands for Industries Purpose (sricity.com) at Tada Nellore Dist, in Border of AP. Lowest cost of land brought from public Even There is no market price also. Here all middle-class people there only depend agree culture. Now there is now agriculture lands they only working local Industries areas. Now iam telling one thing The YSR Govt is cheated public because lowest price of land please Now I request to AP Govt I mean C.M Revised the cost land it’s my amble request because economically poor familys there in place . The Only one Immoveable property of Agree Culture lands also govt taken. It’s my amble request save poor public.
Thanking You
Devi
Sir , I HAVE FIXED DEPOSITE AND PPF A/C IN BANK.
MORE THAN 30 LACK.
I WANT TO KNOW, WILL I HAVE TO PAY WEALTH TAX
Thanking you
VINOD
Urban land is classified as agriculture land and used for agriculture purpose is exempted from wealth tax . But in the top of the mail you have mentioned that ” OR” instead of “AND”. pls clarify the correct understanding.