Basis exemption from wealth tax - computation - Income Tax - 615/CBDT

INSTRUCTION NO. 615/CBDT Dated : September 13, 1973 The Board have noticed that there is a practice with many Wealth-tax Officers of taking the basic exemption of Rs.1 lakh or Rs.2 lakhs while computing the net wealth itself. This has led to incorrect computations of tax in several cases because the clerks, in making the calculations of tax, have again excluded the first Rs. 1 lakh or Rs.2 lakhs of wealth, as the case may be. This practice, if continued, is likely to lead to more mistakes for and from the A.Y. 1972-73 because the exemption of Rs. 1 or 2 lakhs of wealth, as the case may be, is not to be given while making the computation of tax. The Board, therefore desire that this practice should be stopped forthwith in all assessments to be made hereafter for any assessment year. 2. The Board further desire that in respect of all assessments of net wealth over Rs.10 lakhs completed during the financial years 1971-72 and 1972-73, a review should be made to see whether any such deductions of Rs. 1 lakh in the case of an individual and Rs.2 lakhs in the case of a HUF were made while computing the net wealth and whether this has led to wrong calculations of tax. This review should be completed by 30th of November 1973 and a report should be submitted to the Board so as to reach here by 10th of December, 1973.