Union Budget 2012-13 : Wealth Tax – Exemption of residential house allotted to employee

Under the existing provisions of section 2 of the Wealth-tax Act, the specified assets for the purpose of levy of wealth tax do not include a residential house allotted by a company to an employee or an officer or a whole time director if the gross annual salary of such employee or officer, etc. is less than Rs. 5 lakh rupees.

Considering general increase in salary and inflation since revision of this limit, it is proposed to increase the existing threshold of gross salary from five lakh rupees to ten lakh rupees for the purpose of levying wealth-tax on residential house allotted by a company to an employee or an officer or a whole time director.
This amendment will take effect from 1st April, 2013 and will, accordingly, apply in relation to the assessment year2013-14 and subsequent assessment years.
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