Clause 102 - Computation of net wealth - Direct Taxes Code Bill, 2009

Computation of net wealth 102. (1) The net wealth of a person shall be the amount computed in accordance with the formula - A-B Where A = the aggregate of the value on the valuation date, of all the assets, wherever located, belonging to the person, computed in accordance with the provisions of sub-section (3); B = the aggregate of the value on the valuation date, of all the debts, owed by the person, which have been incurred in relation to the said assets. (2) The assets referred to in sub-section (1) shall not include the following:- (a) any property held by the person under trust, or other legal obligation, for carrying out any permitted welfare activity in India; (b) the interest of the person in the coparcenary property of any Hindu undivided family of which he is a member; (c) any one building in the occupation of a Ruler, being a building which immediately before the commencement of the Constitution (Twenty-sixth Amendment) Act, 1971, was his official residence by virtue of a declaration by the Central Government under paragraph 13 of the Merged States (Taxation Concessions) order, 1949, or paragraph 15 of the Part-B States (Taxation Concessions) Order, 1950; (d) jewellery in the possession of any Ruler, not being his personal property, which has been recognised as his heirloom,- (i) by the Central Government before the commencement of this Code; or (ii) by the Board at the time of his first assessment to wealth-tax under the Wealth-tax Act, 1957; (e) the value of the assets located outside India if, during the financial year ending on the valuation date, the person is,- (i) an individual who is not a citizen of India; or (ii) an individual or a Hindu undivided family not resident in India; and (f) any one house or part of a house or a plot of land belonging to an individual or a Hindu undivided family which is acquired or constructed before the 1st day of April, 2000. (3) The value of any asset, other than cash, referred to in sub-section (1), shall be determined in the prescribed manner.