Clause 114 - Net wealth to include certain assets. - Direct Taxes Code, 2010

Net wealth to include certain assets. 114. (1) The specified assets referred to in sub-section (2) of section 113 shall be deemed to be belonging to the person, being an individual, and included in computing his net wealth if such assets, as on the valuation date, are held (whether in the form they were transferred or otherwise),— (a) by the spouse of such individual to whom such asset has been transferred by him, directly or indirectly, otherwise than for adequate consideration or in connection with an agreement to live apart; (b) by a minor child, not being a person with disability or person with severe disability, of such individual; (c) 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 individual or his spouse; (d) by a trust to whom such asset has been transferred by the individual, if the 27 of 1957 transfer is revocable during the life time of the beneficiary of the trust; (e) 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; and 27 of 1957 (f) by a Hindu undivided family by way of any converted property. (2) The provisions of sub-section (1) shall not apply in respect of such specified asset as has been acquired by the minor child out of his income referred to in clause (b) of subsection (1) of section 9 and which are held by him on the valuation date. (3) In this section,— (a) the asset referred to in clause (b) of sub-section (1) shall be included in the net wealth of— (i) the parent who is the guardian of the minor child; or (ii) the parent whose net wealth (excluding the assets referred to in that clause) 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, notwithstanding anything in this Code or in 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; (d) the holder of an impartible estate shall be deemed to be the individual owner of all the properties comprised in the estate; and (e) the value of any assets transferred under an irrevocable transfer shall be liable to be included in computing the net wealth of the transferor in the year in which the power to revoke vests in him.