Exemption u/s.5(1)(xvii) of W.T.Act would not be available in respect of the amount of provident fund retained with the Government by an assessee subsequent to his retirement. - Income Tax - 457/CBDT

INSTRUCTION NO. 457/CBDT Dated: September 29, 1972 Section(s) Referred: 5(1)(vii) Statute: Wealth Tax Act, 1957 Attention is invited to circular letter No.3-D(WT) of 1958, issued vide F.NO.4/16/58-W.T, dated 26th April, 1958 on the above mentioned subject. The question of exemption from wealth-tax under clause (xvii) of sub-section (1) of section 5 of the W.T.Act, 1957 of the amount retained in the Provident Fund after the retirement, has since been reconsidered by the Board. It is felt that since strictly in accordance with the law the exemption from wealth-tax should not be allowed. The circular letter No.3-D(WT) of 1958 is therefore, hereby withdrawn. 2. It is clarified that the exemption u/s.5(1)(xvii) of W.T.Act would not be available in respect of the amount of provident fund retained with the Government by an assessee subsequent to his retirement. The pending wealth-tax assessments of all such assessees, irrespective of the A.Ys involved should be completed accordingly. It is however further clarified that in all such cases where such an exemption u/s.5(1)(xvii) has already been given by the Wealth-tax Officers following the contents of the aforesaid circular letter dated 26th April, 1958 no attempt should be made to re-open the cases u/s.17 or to rectify the completed assessments u/s.35 of the W.T.Act,1957.