A residential building owned by our company and occupied by the director for 4 months during the year was later let out for residential purposes. Since the property was let out on the valuation date, we are of the opinion that it is not liable for wealth tax. Is our contention valid in law?
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A residential building let out for a minimum of 300 days during the previous year is not exigible to wealth tax levy. In this case, on the valuation date it is not used for business. Hence, on that score, the property is not free from wealth tax. Since it was let out for less than 300 days during the previous year, it is not to be excluded from net wealth computation. Hence, your contention is not correct.
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