Assets Exempted from tax under wealth tax act (Sec.5):
The
following assets are exempt from wealth tax (Write only points for short notes)
a)
Property held under trust : Any property held
under trust or other legal obligations by the assessee for any public purpose
of a charitable or religious nature in India is exempt.
b)
Interest in the coparcener property : if the
assessee is a member of H.U.F., he is not liable to pay tax on his share in the
joint property, so long as the property remains joint and he continues as the
member of that family.
c)
One building in the occupation of former Ruler
: any one building which is in the occupation of a Ruler and which has been
declared as his official residence by the Central Govt .is totally exempt from
tax. However the exemption available only to the Ruler during his life time.
d)
Jewellery in possession of a former :
Jewellery in possession of a former Ruler not being his personal property which
has been recognized by the Central Govt. as his heirloom, before commencement
of Wealth Tax Act or by the board after that shall be exempt. However this
exemption is subject to fulfillment of certain conditions like keeping of
jewellery in India, in its original shape, allowing authorized person to
examine the jewellery as and when necessary
e)
Assets of Indian repatriate : Indian
repatriate means a person of Indian origin or a citizen of India who was
residing in a foreign country and on leaving such country assessee has returned
to India with the intention of permanently residing therein. In this case his
following assets shall be exempt for 7 successive assessment years, commencing
with the assessment year following the date of his return to India.
(i) Money
brought by him in India.
(ii)
Assets brought by him in India.
(iii) Any
balance in Non-Resident External Accounts in India on the date of his return
(iv)
Assets acquired by him out of money in his Non-resident External Account or by
sending money from foreign country within 1 year immediately preceding the date
of his return to India.
(v) Any
assets acquired by him out of money brought in by him in India or out of the
balance in NRE account after his arrival in India.
f) House :
One house or part of a house or a plot of land belonging to an individual or
HUF is exempt provided size of plot is not bigger than 500 square meters.