669/CBDT. - Income Tax - 669/CBDT

INSTRUCTION NO. 669/CBDT Dated : March 21, 1974 Section(s) Referred: 5(1)(iv) Statute: Wealth Tax Act, 1957 A question has arisen whether in the cases of assessments to wealth-tax for any assessment year prior to the assessment year 1972-73, an executor assessed u/s 19A of the Wealth-tax Act could claim the benefit of exemption u/s 5(1)(iv) in respect of a house by reason of the fact that he, the executor, was residing in the said house. 2. The Board are advised that the property of the deceased vests in the executor only for the purposes of representation and the executor or administrator has no beneficial interest in any property of the deceased. Consequently though the property vests in the executor and is liable to assessment u/s 19A, it cannot be said that he is residing in a house belonging to him. It may be that the executor resides in a house belonging to the estate but normally he would not be doing so qua-executor. The benefit conferred by Section 5(1)(iv) as it originally stood prior to the amendment made by Finance (No.2) Act, 1971 with effect from 1-4-1972, would be available to an assessee only when he uses for residential purposes a house belonging to him. Since an executor has no beneficial interest in the house as executor, he would not entitled to the benefit of this sub-section. He may even be required to pay rent to the estate of the doccased. Except perhaps in these rate cases where an executor qua-executor is given a right of residence, he cannot for the period prior to the date of the amendment to Section 5(1)(iv) claim the benefit of exemption u/s 5(1)(iv) of the Wealth-tax Act on the ground of self-occupation.