Clause 103 - Net wealth to include certain assets - Direct Taxes Code Bill, 2009

Net wealth to include certain assets 103. (1) The following assets shall be deemed to be belonging to the person, being an individual, and included in computing his net wealth,- (a) the value of asset which on the valuation date are held (whether in the form they were transferred or otherwise) - (i) by the spouse of such individual to whom such asset has been transferred by the individual, directly or indirectly, otherwise than for adequate consideration or in connection with an agreement to live apart; (ii) by a minor child, not being a not being a person with disability or person with severe disability, of such individual; (iii) by a person to whom such asset has been transferred by the individual, directly or indirectly, otherwise than for adequate consideration for the immediate or deferred benefit of the spouse of the individual; (iv) by a trust to whom such asset has been transferred by the individual, if the transfer is revocable during the life time of the beneficiary of the trust; (v) by a person, not being a trust, to whom such asset has been transferred by the individual, if the transfer is revocable during the life time of the person; (b) the value of any converted property; (c) the value of his interest in the asset of an unincorporated body in which he is a participant, (to be included in definition of asset) (2) The provisions of sub-section (1) shall not apply in respect of such asset as has been acquired by the minor child out of his income referred to in sub-clause (i) and (ii) of clause (b) of sub-section (1) of section 8 and which are held by him on the valuation date. (3) For the purposes of this section,- (a) the asset referred to in sub-clause (ii) or sub-clause (iii) of clause (a) of subsection (1) shall be included in the net wealth of - (i) the parent who is the guardian of the minor child, if the other parent is not a guardian; or (ii) the parent whose net wealth (excluding the asset referred to in those subclauses) is higher, if both the parents are guardians of the child; (b) a transfer shall be deemed to be revocable if,- (i) it contains any provision for the re-transfer, directly or indirectly, of the whole or any part of the income or asset to the transferor; or (ii) it, in any way, gives the transferor a right to re-assume power, directly or indirectly, over the whole or any part of the income or asset; (c) the person shall, regardless of anything to the contrary contained in this Code or any other law for the time being in force, be deemed to be the owner of a building or part thereof, if he is a member of a co-operative society, company or other association of persons and the building or part thereof is allotted or leased to him under a house building scheme of the society, company or association, as the case may be; and (d) the holder of an impartible estate shall be deemed to be the individual owner of all the properties comprised in the estate. (e) the value of any assets transferred under an irrevocable transfer shall be liable to be included in computing the net wealth of the transfer in which the power to revoke vests in him;