9911796707
TMI BlogExemptions in respect of certain assetsX X X X Extracts X X X X X X X X Extracts X X X X ..... endment) 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)] 8jewellery 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 and shall not be removed outside India except for a purpose and period approved by the Board ; (ii) that reasonable steps shall be taken for keeping the jewellery substantially in its original shape ; (iii) that reasonab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 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) 19one 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[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] (2) 22[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] (3) 23[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] (4) 24[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] ------------------------------ Notes:- 1. Letter [F. No. 320/157/75-WT], dated 19-11-1975. For details, see Referencer. 2. Words "(1) Subject to the provisions of sub-section (1A)" omitted by the Finance Act, 1992, w.e.f. 1-4-1993. Before the expression was amended vide the Finance Act, 1970, w.e.f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 copyright belonging to the assessee : Provided that they are held by him in his own right as the inventor or author of such patent or copyright, as the case may be, and have not been assigned to, or acquired by, him under a contract or by way of inheritance or otherwise ; (vi) the right or interest of the assessee in any policy of insurance before the moneys covered by the policies become due and payable to the assessee : Provided that in the case of a policy of insurance the premium or other payment whereon is payable during a period of less than ten years, the amount that shall not be included in the net wealth of the assessee under this clause shall be a sum that bears to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 in respect of the services rendered by him in such professional capacity; (xi) instruments and other apparatus used by the assessee for purposes of scientific research ; (xii) any works of art, archaeological, scientific or art collections, books or manuscripts belonging to the assessee and not intended for sale ; (xiii) any drawings, paintings, photographs, prints and any other heirloom not falling within clause (xii) and not intended for sale, but not including jewellery :" 7. Renumbered for "(xiv)" by the Finance Act, 1992, w.e.f. 1-4-1993. 8. See Circular No. 3D(WT) of 1960, dated 1-4-1960. For details, see Referencer. 9. Inserted by the Rulers of Indian States (Abolition of Privileges) Act, 1972, w.e.f. 9-9-1972. 10. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 either of his parents or any of his grand-parents was born in undivided India ; (b) an individual shall be deemed to be not resident in India during the year ending on the valuation date if in respect of that year the individual is not resident in India within the meaning of the Income-tax Act ; (c) "foreign exchange asset" shall have the meaning assigned to it in clause (b) of section 115C of the Income-tax Act ; (xvica) in the case of an individual, being a citizen of India or a person of Indian origin who is resident in India, during the year ending on the valuation date, any foreign exchange asset [being an asset referred to in sub-clause (ii) or sub-clause (iii) or sub-clause (iv) or sub-clause (v) of clause (f) of section 115C of the Income-tax Act], where such ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tained 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 (c) an association of persons or body of individuals consisting, in either case, only of husband and wife governed by the system of community of property in force in the State of Goa and the Union territories of Dadra and Nagar Haveli and Daman and Diu, in any provident fund set up by the Central Government and notified† by it in this behalf in the Official Gazette ; (xviib) any property held by the trustees on behalf of any provident fund 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 ; (xviiba) any property held-- (a) by the Board of Trustees constituted under the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (46 of 1948), on behalf of the Deposit-linked Insurance Fund established under section 3G of that Act ; or (b) by the B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve 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 in India within the meaning of the Explanation to clause (d) of section 45, as is employed by it in a new and separate unit set up after the commencement of this Act by way of substantial expansion of its undertaking: Provided that-- (a) separate accounts are maintained in respect of such unit ; and (b) the conditions specified in clause (d) of section 45 are complied with in relation to the establishment of such unit : Provided further that this exemption shall apply to any such company only for a period of five successive assessment years commencing with the assessment year next following the date on which the company commences operations for the establishment of such unit ; (xxii) any security of the Central Government or a State Government [not being a security referred to in clause (xvi) or clause (xvia)] ; (xxiii) any shares not being shares referred to in clause (xx) or clause (xxa) in any Indian company where the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Central Government or a State Government ; or a public sector company. Explanation.--For the purposes of this clause, "public sector company" means any corporation established by or under any Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956) ; (xxviid) any deposits made with the National Housing Bank established under section 3 of the National Housing Bank Act, 1987 (53 of 1987) ; (xxviii) any shares in any co-operative society ; (xxix) any deposits with a co-operative society, not being deposits referred to in clause (xxvi) or clause (xxx), made by a member of the society ; (xxx) any deposits with a co-operative housing society made by a member of the society to whom a building or part thereof is allotted or leased under a house building scheme of the society, where such deposits have been made under such scheme ; (xxxa) the value of one or more dwelling units (each having a plinth area of eighty square metres or less) belonging to the assessee and used solel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or part of a house belonging to an individual or a Hindu undivided family;" 19. For relevant circulars, see Referencer. 20. Before to omission, clause (xxxiv) as inserted by the Finance Act, 1976, w.e.f. 1-4-1976, read as under : "(xxxiv) in the case of an individual, being a citizen of India, who is not resident in India during the year ending on the valuation date, the value of any equity shares in any company of the type referred to in clause (d) of section 45 which is engaged in the business of manufacture or production of any one or more of the articles or things specified in Schedule II or which is certified by the prescribed authority* to have undertaken the export of such percentage of its total production as may be specified in this behalf by the prescribed authority, where such shares form part of the initial issue of the equity share capital made by the company after the 31st day of March, 1976, or where such shares form part of an issue of equity share capital which is certified by the prescribed authority to have been made by the company after the 31st day of March, 1976, for the purposes of expansion or diversification of its industrial undertaking. Explanation.-- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under this proviso shall not exceed twenty-five thousand rupees. Explanation.--Where a debt is secured on, or has been incurred in relation to, any asset referred to in this sub-section, the exemption under this sub-section shall be allowed first against the value of the asset on which or in relation to which such debt is secured or incurred and, thereafter, against the value of any other asset so referred to." *Since repealed ; now Post Office Cumulative Time Deposit Rules, 1981. 22. Before to omission, sub-section (2), as amended by the Taxation Laws (Amendment) Act, 1962, w.e.f. 13-12-1962 and the Finance Act, 1968, w.e.f. 1-4-1969, read as under: "(2) Wealth-tax shall not be payable by an assessee in respect of any deposit made by the assessee with the Government or in any security of the Government or of a local authority not specified in clause (xv) or clause (xvi) or clause (xvia) of sub-section (1) which the Central Government may, by notification in the Official Gazette, exempt from wealth-tax, but the value of any deposit or security so exempted shall be included in computing the net wealth of the assessee." 23. Before to omission, sub-section (3), as amended by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or with the proceeds of, or with the money constituting, any other asset exempt from wealth-tax under sub-section (1) or sub-section (2), there shall be included, if the assessee acquired the relevant asset within sixty days after he ceased to own such other asset, so much of the period for which the assessee has owned such other asset as falls within the period of twelve months ending with the relevant valuation date." 24. Before to omission, sub-section (4), as inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, read as under: "(4) Where the assessee is a partner of a firm or member of an association of persons, and the firm or association owns any one or more of the assets which are exempt under sub-section (1), then, for the purposes of his assessment under this Act, the value of his interest in the firm or association shall be deemed to include the value of a part of each such asset of the firm or association in the same proportion in which he is entitled to share the profits of the firm or association and the assessment shall be made after allowing the exemption under sub-section (1) in respect of those assets on the basis of such proportionate value." ..... X X X X Extracts X X X X X X X X Extracts X X X X
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