Notes 02 - Notes on clauses - Wealth-tax - Finance Bill, 2013

Wealth-tax Clause 51 seeks to amend section 2 of the Wealth-tax Act relating to definitions. The provisions contained in clause (ea) of section 2 define the term assets . Sub-clause (v) of the said clause (ea) includes urban land in the definition of the term assets . Clause (b) of Explanation 1 to the said clause (ea) defines the term urban land . It is proposed to amend clause (b) of Explanation 1 to clause (ea) of section 2 so as to provide that land situated in any area within the distance, measured aerially, (I) not being more than two kilometres, from the local limits of any municipality or cantonment board referred to in clause (i) and which has a population of more than ten thousand but not exceeding one lakh; or (II) not being more than six kilometres, from the local limits of any municipality or cantonment board referred to in clause (i) and which has a population of more than one lakh but not exceeding ten lakh; or (III) not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in clause (i) and which has a population of more than ten lakh shall be classified as urban land. An Explanation has been inserted to clarify the expression population . This amendment will take effect from 1st April, 2014, and will, accordingly, apply in relation to Assessment Year 2014-15 and subsequent assessment years. Clause 52 of the Bill seeks to insert new sections 14A and 14B in the Wealth-tax Act relating to rule making power of the Board. It is proposed to insert a new section 14A so as to provide that the Board may make rules providing for a class or classes of persons who may not be required to furnish documents, statements, receipts, certificates, audit reports, reports of registered valuer or any other documents, which are otherwise under any other provisions of this Act, except section 14B, required to be furnished, along with the return of wealth but on demand to be produced before the Assessing Officer. It is further proposed to insert a new section 14B so as to provide that the Board may make rules providing for class or classes of persons who shall be required to furnish the return in electronic form; the form and the manner in which the return in electronic form may be furnished; the documents, statements, receipts, certificates, audit reports, reports of registered valuer or any other documents which may not be furnished along with the return in electronic form but shall be produced before the Assessing Officer on demand; the computer resource or the electronic record to which the return in electronic form may be transmitted. Consequentially, it is proposed to insert new clauses (ba) and (bb) in sub-section (2) of section 46 which provides for rule making powers of the Board. These amendments will take effect from 1st June, 2013. Clause 53 of the Bill seeks to amend section 46 of the Wealthtax Act relating to power of the Board to make rules. It is proposed to insert new clauses (ba) and (bb) in subsection (2) of the said section which are consequent to insertion of sections 14A and 14B giving certain rule making powers to the Board. This amendment will take effect from 1st June, 2013.