A commercial property,
if let out for the assessment year 1997-98 would be subject to wealth tax. The introduction of wealth-tax is applicable even in the case
where commercial complex constructed is not sold out and remains unoccupied.
The interest on money borrowed for the construction or purchase or repair of property has
been increased from Rs. 10,000 to Rs. 15,000 with effect from the assessment year 1997-98.
If there is a net loss, it can be adjusted against other incomes.
A new exemption from long term capital gains has been introduced with effect from the
assessment year 1997-98. Where investment in specified bonds or debentures or units of
mutual funds to be so notified by the Central Government is made out of the net
consideration arising from the transfer of a capital asset within six months, exemption is
made available under section 54 EA. The lock-in period will be 3 years.
|
