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TMI BlogWhether annuity receivable under annuity deposit scheme is covered within the meaning of clauses (e)(iv)X X X X Extracts X X X X X X X X Extracts X X X X ..... n-commutable and, therefore, the value thereof should be exempted from wealth-tax under section 2(e)(iv). It is proposed to make, in this respect, a clarificatory amendment to section 5(1) with retrospective effect, by the Taxation Laws (Amendment) Act, 1970. 2. In all the pending assessments, the value of such annuities will not be added to the net wealth. Besides, as far as possible, assessments which have already been completed will be rectified suo motu by the Wealth-tax Officer, so that the commuted value of the annuity deposit, if included, in each case is deleted. Applications for such rectifications by the assessees would be accepted by the Wealth-tax Officer. Circular : No. 17 of 1969, dated 10-6-1969. ANNEX - CIRCULAR N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 be received by the individual if the outstanding annuities were to be commuted as on the relevant valuation date. The amount payable on the commutation of annuities in respect of annuity deposits is required to be calculated in accordance with the Table of commuted value of annuities set forth in Appendix II of the Annuity Deposit Scheme, 1964 and the Annuity Deposit Scheme, 1966. The table of commuted value of annuities (which is the same under both the Schemes) is reproduced below : TABLE OF COMMUTED VAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 36 13.63 136.25 After the expiry of 9 years but before 10 years from the date of deposit 0.57 5.75 57.46 Note : The amount of the commuted annuity will be calculated in the following manner : 1. For every unit of Rs. 1,000, if any, comprised in the amount of annuity deposit, the amount of the commuted value will be calculated at the rates specified in column 4 ; 2. For every unit of Rs. 100, if any, comprised in the amount of the annuity deposit, remaining after the calculation at (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, re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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