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TMI BlogExemptions in respect of certain assetsX X X X Extracts X X X X X X X X Extracts X X X X ..... Ruler, being a building which immediately before the commencement of the Constitution (Twenty-sixth Amendment) Act, 1971, was his official residence by virtue of a declaration by the Central Government] under paragraph 13 of the Merged States (Taxation Concessions) Order, 1949, or paragraph 15 of the Part B States (Taxation Concessions) Order, 1950; (iv) to 6 [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] (xiii) 7 [ (iv) ] 8 jewellery in the possession of any Ruler, not being his personal property, which has been recognised before the commencement of this Act, by the Central Government as his heirloom or, where no such recognition exists, which the Board may, subject to any rules that may be made by the Central Government in this behalf, recognise as his heirloom at the time of his first assessment to wealth-tax under this Act: 9 [ Provided that in the case of jewellery recognised by the Central Government as aforesaid, such recognition shall be subject to the following conditions, namely : (i) that the jewellery shall be permanently kept in India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall apply only for a period of seven successive assessment years commencing with the assessment year next following the date on which such person returned to India. Explanation 16 [1]. A person shall be deemed to be of Indian origin if he, or either of his parents or any of his grand-parents, was born in undivided India.] 17 [ Explanation 2 .For the removal of doubts, it is hereby declared that moneys standing to the credit of such person in a Non-resident (External) Account in any bank in India in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made thereunder, on the date of his return to India, shall be deemed to be moneys brought by him into India on that date;] 18 [(vi) 19 one house or part of a house or a plot of land belonging to an individual or a Hindu undivided family: Provided that wealth-tax shall not be payable by an assessee in respect of an asset being a plot of land comprising an area of five hundred square metres or less.] (xxxiv) 20 [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] (1A) 21 [Om ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... begun on or after the 1st day of April, 1976 : Provided that this exemption shall apply in respect of any dwelling unit or units and the land appurtenant thereto only for a period of five successive assessment years next following the date on which the construction of such dwelling unit or units is completed. Explanation . For the purposes of this clause, ( a ) "dwelling unit" means a unit of accommodation used solely for the purpose of residence ; ( b ) "land appurtenant", in relation to any dwelling unit or units comprising a building, means, ( i ) in an area where there is any law in force providing for the minimum extent of land contiguous to the land occupied by any building to be kept as open space for the enjoyment of such building, the minimum extent of land contiguous to the land occupied by the building comprising such dwelling unit or units required to be kept as open space under such law ; ( ii ) in any other area, an extent of land not exceeding one-third of the plinth area of the building comprising the dwelling unit or units at the ground level contiguous to the land occupied by such building ; ( v ) the rights under any patent or copyr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purposes of this clause, "conveyance" means any motor car or other mechanically propelled vehicle, aircraft or boat; ( viiia ) [* * *] ( viiib ) [* * *] ( ix ) the tools, implements and equipments used by the assessee for the cultivation, conservation, improvement or maintenance of agricultural land, or for the raising or harvesting of any agricultural or horticultural produce on such land. Explanation. For the purposes of this clause, tools, implements and equipment do not include any plant or machinery used in any tea or other plantation in connection with the processing of any agricultural produce or in the manufacture of any article from such produce ; ( x ) the tools and instruments necessary to enable the assessee to carry on his profession or vocation, subject to a maximum of fifty thousand rupees in value ; ( xa ) in the case of an assessee who is carrying on a profession (being legal, medical, engineering or architectural profession or the profession of accountancy or such other profession as is notified by the Central Government in this behalf) and who regularly maintains books of account on the cash system of accounting, the amount of any fee due to him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt and notified* by it in this behalf in the Official Gazette, to the extent to which the amounts of such deposits do not exceed the maximum amount permitted to be deposited therein ; ( xvi ) ten-year treasury savings deposit certificates, fifteen-year annuity certificates, deposits in post office savings banks, post office cash certificates, post office national savings certificates, post office national plan certificates and twelve-year national plan savings certificates, ten-year defence deposit certificates and twelve-year national defence certificates, to the extent to which the amount of such certificates or deposits do not exceed in each case the maximum amount permitted to be invested or deposited therein ; ( xvia ) 6 per cent Gold Bonds, 1977, 7 per cent Gold Bonds, 1980, and National Defence Gold Bonds, 1980 ; ( xvib ) Special Bearer Bonds, 1991 ; ( xvic ) in the case of an individual, being a citizen of India or a person of Indian origin who is not resident in India, during the year ending on the valuation date, any foreign exchange asset. Explanation . For the purposes of this clause, ( a ) a person shall be deemed to be of Indian origin if he or eit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iving by way of gift from such individual, the bonds specified under sub-clause ( iid ) of clause ( 15 ) of section 10 of the Income-tax Act : Provided that where an individual, who is a non-resident Indian during the year ending on the valuation date in which the bonds are acquired, becomes a resident in India in any subsequent year ending on the valuation date, the provisions of this clause shall continue to apply in relation to such individual. Explanation . For the purposes of this clause, an individual shall be deemed to be a non-resident Indian during the year ending on the valuation date if in respect of that year the individual is a non-resident Indian within the meaning of clause ( e ) of section 115C of the Income-tax Act ; ( xvii ) the amount standing to the credit of an assessee, being a salaried employee, in any provident fund maintained by his employer to which the Provident Funds Act, 1925 (19 of 1925), applies or which is a recognised provident fund within the meaning of clause ( 38 ) of section 2 of the Income-tax Act ; ( xviia ) the amount standing to the credit of : ( a ) an individual ; or ( b ) a Hindu undivided family ; or ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; ( xx ) the value of any equity shares in any company of the type referred to in clause ( d ) of section 45, where such shares form part of the initial issue of equity share capital made by the company after the 31st day of March, 1964, but before the 1st day of June, 1971, for a period of five successive assessment years commencing with the assessment year next following the date on which such company commences the operations for which it has been established ; ( xxa ) the value of any equity shares in any company of the type referred to in clause ( d ) of section 45 which is established with the main object of carrying on the business of manufacture or production of any one or more of the articles or things specified in the list in the Ninth Schedule to the Income-tax Act , where such shares form part of the initial issue of equity share capital made by the company after the 28th day of February, 1975, for a period of five successive assessment years commencing with the assessment year next following the date on which such shares were first issued ; ( xxi ) that portion of the net wealth of a company established with the object of carrying on an industrial undertaking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i ) any deposits with a financial corporation which is engaged in providing long-term finance for industrial development in India or with a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes : Provided that the corporation or, as the case may be, the company is for the time being approved by the Central Government for the purposes of clause ( viii ) of sub-section (1) of section 36 of the Income-tax Act ; ( xxviia ) any deposits with the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964 (18 of 1964) ; ( xxviib ) any deposits with any authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both ; ( xxviic ) any deposits made in accordance with the scheme referred to in item ( i ) of sub-clause ( iv ) of clause ( 15 ) of section 10 of the Income-tax Act, by any employee of the Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 27-2-1992. For notified bonds of public sector companies under clause ( xvie ), prior to its omission, refer Direct Taxes Circulars. For debentures notified under clause ( xxiv ), refer Direct Taxes Circulars. For notified National Deposit Scheme under clause ( xxva ), refer Direct Taxes Circulars. Public Provident Fund Scheme was notified under clause ( xviia ) vide Notification No. SO 2432, dated 2-7-1968. Refer Direct Taxes Circulars. 11. Renumbered for "(xxxiii)" by the Finance Act, 1992, w.e.f. 1-4-1993. 12. Inserted by the Finance Act, 1976, w.e.f. 1-4-1977. 13. See Circular No. 411, dated 25-2-1985. For details, see Referencer. 14. Inserted by the Taxation Laws (Amendment) Act, 1984, w.r.e.f. 1-4-1977. 15. Inserted by the Finance Act, 1986, w.e.f. 1-4-1987. 16. Inserted by the Finance Act, 1986, w.r.e.f. 1-4-1977. 17. Inserted by the Finance Act, 1986, w.r.e.f. 1-4-1977. 18. Substituted vide the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999. Before to its substitution, clause (vi), as inserted by the Finance Act, 1993, w.e.f. 1-4-1994, read as under: "(vi) one house or part of a house belonging to an individual or a Hindu undivid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umulative Time Deposits) Rules, 1959*, to the extent the value thereof exceeds, in the aggregate, a sum of five hundred thousand rupees : Provided that where the assets include any assets referred to in clause (xv) or clause (xvi) [not being deposits under the Post Office Savings Bank (Cumulative Time Deposits) Rules, 1959*, which have been owned by the assessee continuously from a date prior to the 1st day of March, 1970, and the value of the assets so included exceeds the limit of five hundred thousand rupees by any amount, such limit shall be raised by the said amount: Provided further that nothing contained in this sub-section shall apply to any assets referred to in clause (xvie) which are sold by a public sector company before the 1st day of June, 1988: Provided also that where the value of any assets, being deposits referred to in clause (xxva), has not been excluded from the net wealth of the assessee under the foregoing provisions of this sub-section, so much of the value of such assets as has not been so excluded shall be excluded from the net wealth of the assessee ; so, however, that the value of the assets so excluded under this proviso shall not exceed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... debentures referred to in clause (xvie), or Relief Bonds referred to in clause (xvif), of sub-section (1), from the date on which the Bonds or debentures or Relief Bonds, as the case may be, were subscribed to by the assessee, or for a period of at least six months ending with the relevant valuation date, whichever is shorter; and (b) in the case of other assets, for a period of at least six months ending with the relevant valuation date : Provided that for the purpose of making any assessment for the assessment year commencing on the 1st day of April, 1963, the provisions of clause (b) shall not apply to ten-year defence deposit certificates and twelve-year national defence certificates held by the assessee on the relevant valuation date. Explanation . For the purposes of clause (a) or clause (aa) or clause (b) of this sub-section, in computing the period of six months in relation to any asset (not being any share or security held as stock-in-trade for the purposes of the business of the assessee) in a case where such asset (hereafter in this Explanation referred to as the relevant asset) was acquired by the assessee by conversion of, or in exchange for, or with the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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