Wealth Tax-Clarification of Sec.5(1)(xxxiii). - Income Tax - 1301/CBDT

INSTRUCTION NO. 1301/CBDT Dated: January 29, 1980 The Board has been receiving representations from various quarters seeking clarification as to the assessment year from which the provisions of section 5(1)(xxxiii) is applicable. Sub-section (1) of section 5 of the Wealth-tax Act, 1957 contains two ingredients; (1) that the exemption would be available for a period of seven successive assessment years; and (2) that the first of the aforesaid seven years would be the assessment year next following the date on which such person returned to India. As the proviso is worded, the exemption would begin immediately from the assessment year next to the one in which the person returns to India and there is no warrant for any gap for the purpose of commencement of exemption after the return of the person to India. 3. It is further clarified that as the particular clause (Clause (xxxiii) of sub-section (1) of section 5 of WT Act, 1957 ) has come into operation only with effect from 1.4.1977, the same would not be applicable to a person who returned to India before 1st April, 1976.