Direct tax Law 2009 (Solved)

Definition of Assets
Under Section 2(ea), Assets  means
a)      House:  Any building or land appurtenant thereto, Whether used for residential purposes or commercial purposes or  for the purpose of maintaining a guest house or otherwise. It also includes a farm house situated within 25 kilometers from local limits of any municipality or a Cantonment Board.
But does not include:
(i).    A house meant exclusively for residential purposes and which is allotted by a company to an employee or an officer or a director who is in whole-time employment, having a gross annual salary of less than Rs. 5 Lacs. ;
(ii).  Any house for residential or commercial purposes which forms part of stock-in-trade ;
(iii). Any house which the assessee may occupy for the purposes of any business or profession carried on by him;
(iv).Any residential property that has been let-out for a minimum period of 300 days in the previous year;
(v).  Any property in the nature of commercial establishments or complexes;

b)      Motor cars but does not include:
(i).    Cars used by the assessee in the business of running them on hire.
(ii).  Cars used by the assessee as stock-in-trade ;

c)       Jewellery: Jewellery, bullion, furniture, utensils or any other article made wholly or partly of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals but does not include Jewellery used by the assessee as stock-in-trade ;

d)      Air/ Water Transport Vehicles, Yachts, boats and aircrafts. But does not include those held as stock-in-trade and used by the assessee for commercial purposes)

e)      urban land:  Means land situated
(i) in any area which is comprised within the jurisdiction of a municipality or a cantonment board and which has a population of not less than 10000 according to the last preceding census of which the relevant figures have been published before the valuation date ; or
(ii) in any area within such distance, not being more than 8 kilometers from the local limits of any municipality or cantonment board referred to in sub-clause (i), as the Central Government may, having regard to the extent of, and scope for, urbanization of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette,
But does not include:
(i).    Land on which construction of building is not permissible under any law for the time being in force in which such land is situated.
(ii).  Land occupied by any building which has been constructed with the approval appropriate authority
(iii). Any unused land held by assessee for industrial purposes for a period of 2 years from the date of its acquisition by him.
(iv).Any land held by assessee as Stock-in-trade for a period of 10 Years from the date of its acquisition by him.

f)       Cash-in-hand Means:
In case of Individual and HUF      -              cash in excess of Rs. 50000
In the case of other persons                       -              any amount not recorded in the books of account.

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