Whether annuity receivable under annuity deposit scheme is covered within the meaning of clauses (e)(iv)

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..... 68 [printed here as Annex] regarding the liability to wealth-tax of the value of the annuities receivable on the annuity deposits made under the relevant provisions of the Income-tax Act. On a reconsideration of the matter, the Board have decided that the annuities receivable under the annuity deposit scheme are generally non-commutable and, therefore, the value thereof should be exempted from wea .....

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..... it under the relevant provisions of the Income-tax Act is liable to wealth-tax in respect of the value of annuity receivable by him on such deposits. The position in the matter is explained in the following paragraph : 2. A person making an annuity deposit under the Income-tax Act is entitled to receive annuities in respect of the deposit over a period of 10 years commencing after the expiry of 1 .....

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..... covered by this sub-clause as these annuities can be commuted in certain circumstances, as stated in the proviso to section 280D of the Income-tax Act. The value of annuities receivable in respect of the annuity deposit, as on the relevant valuation date, is , therefore, includible in the net wealth of an individual for the purposes of wealth-tax. Such value is equivalent to the amount that would .....

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..... rs from the date of deposit 8.75 87.50 875.00 After the expiry of 2 years but before 3 years from the date of deposit 7.85 78.50 785.05 After the expiry of 3 years but before 4 years from the date of deposit 6.72 67.19 671.91 After the expiry of 4 years but before 5 years from the date of deposit 5.58 55.75 557.50 After the expiry of 5 years but before 6 years from the date .....

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..... (1), the amount of the commuted value will be calculated at the rates specified in column 3 ; and 3. For every unit of Rs. 10, if any, comprised in the amount of annuity deposit, remaining after the calculation at (1) and (2) the amount of the commuted value will be calculated at the rates specified in column 2. The aggregate of the amounts calculated as at (1), (2) and (3) will be the amount .....

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