Disallowability of wealth-tax liability as a deduction for computing net wealth under the Wealth-tax Act, 1957, consequent to amendment of section 2(m) with effect from April 1, 1993

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..... ) with effect from April 1, 1993 Circular No. 663 Dated 28/9/1993 Section 2(m) of the Wealth-tax Act, 1957, has been amended with effect from April 1, 1993. Under the amended clause (m), in the computation of the net wealth, the assessee is to be allowed deduction only for debts owed by him on the valuation date which have been incurred in relation to the assets liable to wealth-tax. Up .....

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..... le under the Wealth-tax Act. The liability to wealth-tax is a personal liability of the assessee. Moreover, this liability not a debt incurred by the assessee but is created by the statute. Therefore, no deduction is to be allowed for the wealth-tax liability in the computation of the taxable net wealth of the assessee from the assessment year 1993-94 onwards. 3. This clarification may be kept i .....

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