WEALTH-TAX ACT, 1957
(1) This Act may be called the Wealth-Tax Act, 1957.
(2) It extends to the whole of India.
(3) It shall be deemed to have come into force on the 1st day of April, 1957.
In this Act, unless the context otherwise requires,—
1[***]
2[(b) “Appellate Tribunal” means the Appellate Tribunal constituted under section 252 of the Income-tax Act;
(c) “assessee” means a person by whom wealth-tax or any other sum of money is payable under this Act, and includes—
(i) every person in respect of whom any proceeding under this Act has been taken for the determination of wealth-tax payable by him or by any other person or the amount of refund due to him or such other person;
(ii) every person who is deemed to be an assessee under this Act;
(iii) every person who is deemed to be an assessee in default under this Act;
1[(1)] 2[Subject to the other provisions (including provisions for the levy of additional wealth-tax) contained in this Act], there shall be charged for every 3[assessment year] commencing on and from the first day of April, 1957 4[but before the 1st day of April, 1993], a tax (hereinafter referred to as wealth-tax) in respect of the net wealth on the corresponding valuation date of every individual, Hindu undivided family and company 5[at the rate or rates specified in Schedule I].
6[(2) Subject to the other provisions contained in this Act, there shall be charged for every assessment year commencing on and from the 1st day of April, 1993, wealth-tax in respect of the net wealth on the corresponding valuation date of every individual, Hindu undivided family and company, at the rate of one per cent. of the amount by which the net wealth exceeds fifteen lakh rupees.]
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(1)1[In computing the net wealth—
(a) of an individual, there shall be included, as belonging to that individual, the value of assets which on the valuation date are held—]
2[(i) by the spouse of such individual to whom such assets have been transferred by the individual, directly or indirectly, otherwise than for adequate consideration or in connection with an agreement to live apart, or
(ii) by a minor child, not being 3[a minor child suffering from any disability of the nature specified in section 80U of the Income-tax Act or] a married daughter, of such individual, 4[***], or
(iii) by a person or association of persons to whom such assets have been transferred by the individual 5[directly or indirectly,] otherwise than for adequate considera
1[ 2[***] Wealth-tax shall not be payable by an assessee in respect of the following assets]; and such assets shall not be included in the net wealth of the assessee—
(i) any property held by him under trust or other legal obligation for any public purpose of a charitable or religious nature in India:
3[Provided that nothing contained in this clause shall apply to any property forming part of any business, not being a business referred to in clause (a) or clause (b) of sub-section (4A) of section 11 of the Income-tax Act in respect of which separate books of account are maintained or a business carried on by an institution fund or trust referred to in 4[***] clause (23B) or clause (23C) of section 10 of the Act;]
(ii) the interest of the assessee in the coparcenary property of any Hindu und
1[In computing the net wealth of an individual who is not a citizen of India or of an individual] or a Hindu undivided family not resident in India or resident but not ordinarily resident in India, or of a company not resident in India during the year ending on the valuation date—
(i) the value of the assets and debts located outside India; and
(ii) the value of the assets in India represented by any loans or debts owing to the assessee in any case where the interest, if any, payable on such loans or debts is not to be included in the total income of the assessee under 2[section 10] of the Income-tax Act; shall not be taken into account.
Explanation 1.—An individual or a Hindu undivided family shall be deemed to be not resident in India or resident but not ordinarily resident in India durin
(1) Subject to the provisions of sub-section (2), the value of any asset, other than cash, for the purposes of this Act shall be its value as on the valuation date determined in the manner laid down in Schedule III.
(2) The value of a house belonging to the assessee and exclusively used by him for residential purposes throughout the period of twelve months immediately preceding the valuation date, may, at the option of the assessee, be taken to be the value determined in the manner laid down in Schedule III as on the valuation date next following the date on which he became the owner of the house or the valuation date relevant to the assessment year commencing on the Ist day of April, 1971, whichever valuation date is later.
2[***]
Explanation .— For the purposes of this sub-section,—
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The income-tax authorities specified in section 116 of the Income-tax Act shall be the wealth-tax authorities for the purposes of this Act and every such authority shall exercise the powers and perform the functions of a wealth-tax authority under this Act in respect of any individual, Hindu undivided family or company, and for this purpose his jurisdiction under this Act shall be the same as he has under the Income-tax Act by virtue of orders or directions issued under section 120 of that Act (including orders or directions assigning concurrent jurisdiction) or under any other provision of that Act.
Explanation. — For the purposes of this section, the wealth-tax authority having jurisdiction in relation to a person who is not an assessee within the meaning of the Income-tax Act shall be the wealth-tax authority having jurisdiction in respect of the area in which that person resid
Section 118 of the Income-tax Act and any notification issued thereunder shall apply in relation to the control of wealth-tax authorities as they apply in relation to the control of the corresponding income-tax authorities, except to the extent to which the Board may, by notification in the Official Gazette, otherwise direct in respect of any wealth-tax authority.]
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1. Subs. by Act 4 of 1988, sec. 131, for sections 9 and 10 (w.e.f. 1-4-1988).
(1) The Board may, from time to time, issue such orders, instructions and directions to other wealth-tax authorities as it may deem fit for the proper administration of this Act, and such authorities and all other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions of the Board:
Provided that no such orders, instructions or directions shall be issued—
(a) so as to require any wealth-tax authority to make a particular assessment or to dispose of a particular case in a particular
manner; or
(b) so as to interfere with the discretion of the Deputy Commissioner (Appeals) or Commissioner (Appeals) in the exercise of his appellate functions.
(2) W
(1) The provisions of sections 124 and 127 of the Income-tax Act shall, so far as may be, apply for the purposes of this Act as they apply for the purposes of the Income-tax Act, subject to the modifications specified in sub-section (2).
(2) The modifications referred to in sub-section (1) shall be the following, namely:—
(a) in section 124 of the Income-tax Act,—
(i) in sub-section (3), references to the provisions of the Income-tax Act shall be construed as references to the corresponding provisions of the Wealth-tax Act;
(ii) sub-section (5) shall be omitted:
(b) in section 127 of the Income-tax Act, in the Explanation below sub-section 2[(4)], references to proceedings under the Income-tax Act sh
(1) The Centeral Government may appoint as many Valuation Officers as it thinks fit.
(2) Subject to the rules and orders of the Centeral Government regulating the conditions of service of persons in public services and posts, a wealth-tax authority may appoint as many overseers, surveyors and assessors as may be necessary to assist the Valuation Officers in the performance of their functions.]
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1. Ins. by Act 45 of 1972, sec. 9 (w.e.f. 15-11-1972).
[ Rep. by the Direct Tax Laws (Amendment) Act, 1987 (14 of 1988), sec. 132 (w.e.f. 1-4-1988). ]]
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1. Earlier section 13 was amended by Act 46 of 1964, sec. 12 (w.e.f. 1-4-1965).
The 2[Director-General or Director], the 5[Chief Commissioner or Commissioner] and the 6[Joint Commissioner] shall be competent to make any enquiry under this Act, and for this purpose shall have all the powers that 7[an Assessing Officer] has under this Act in relation to the making of enquiries.]
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1. Ins. by Act 46 of 1964, sec. 13 (w.e.f. 1-4-1965).
2. Subs. by Act 4 of 1988, sec. 127, for “Director of Inspection” (w.e.f. 1-4-1988).
3. Subs. by Act 4 of 1988, sec. 127, for “Commissioner” (w.e.f. 1-4-1988).
4. Subs. by Act 4 of 1988, sec. 127, for “Inspecting Assistant Commissioner” (w.e.f. 1-4-1988).
4. Subs. by Act 4 of 1988, sec. 127, for “C
1[(1) Every person, if his net wealth or the net wealth of any other person in respect of which he is assessable under this Act on the valuation date exceeded the maximum amount which is not chargeable to wealth-tax, shall, on or before the due date, furnish a return of his net wealth or the net wealth of such other person as on that valuation date in the prescribed form and verified in the prescribed manner setting forth particulars of such net wealth and such other particulars as may be prescribed.
Explanation .—In this sub-section, “due date” in relation to an assessee under this Act shall be the same date as that applicable to an assessee under the Income-tax Act under the Explanation to sub-section (1) of section 139 of the Income-tax Act.
(2) Notwithstanding anything contained in any other provision of this Act, a return of net w
If any person has not furnished a return within the time allowed under sub-section (1) of section 14 or under a notice issued under clause (i) of sub-section (4) of section 16, or having furnished a return discovers any omission or wrong statement therein, he may furnish a return or a revised return, as the case may be, at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier:
Provided that—
(a) where such return or revised return relates to the assessment year commencing on the 1st day of April, 1987, or any earlier assessment year, it may be furnished at any time upto and inclusive of the 31st day of March, 1990, or before the completion of the assessement, whichever is earlier;
(b) where such r
The return made under section 14 or section 15 shall be signed and verified—
2[(a) in the case of an individual,—
(i) by the individual himself;
(ii) where he is absent from India, by the individual himself or by some person duly authorised by him in this behalf;
(iii) where he is mentally incapacitated from attending to his affairs, by his guardian or any other person competent to act on his behalf; and
(iv) where, for any other reason, it is not possible for the individual to sign the return, by any person duly authorised by him in this behalf:
Provided that in a case referred to in sub-clause (ii) or sub-clause (iv), the person signing the return holds
(1) Where any tax is payable on the basis of any return furnished under section 14 or section 15 or in response to a notice under clause (i) of sub-section (4) of section 16 or under section 17, after taking into account the amount of tax, if any, already paid under any provision of this Act, the assessee shall be liable to pay such tax, together with interest payable under any provision of this Act for any delay in furnishing the return, before furnishing the return and the return shall be accompanied by proof of payment of such tax and interest.
Explanation .—Where the amount paid by the assessee under this sub-section falls short of the aggregate of the tax and interest as aforesaid, the amount so paid shall first be adjusted towards the interest payable as aforesaid and the balance, if any, shall be adjusted towards the tax payable.
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1[(1) Where a return has been made under section 14 or section 15 or in response to a notice under clause (i) of sub-section (4),—
(i) if any tax or interest is found due on the basis of such return, after adjustment of any amount paid by way of tax or interest, then, without prejudice to the provisions of sub-section (2), an intimation shall be sent to the assessee specifying the sum so payable and such intimation shall be deemed to be a notice of demand issued under section 30 and all the provisions of this Act shall apply accordingly; and
(ii) if any refund is due on the basis of such return, it shall be granted to the assessee and an intimation to this effect shall be sent to the assessee:
Provided that except as otherwise provided in this sub-section, the acknowledgement of the return
(1) For the purpose of making an assessment (including an assessment in respect of any assessment year commencing before the date of coming into force of this section) under this Act, 2[where under the provisions of section 7 read with the rules made under this Act or, as the case may be, the rules made in Schedule III, the market value of any asset is to be taken into account in such assessment,] the 3[Assessing Officer] may refer the valuation of any asset to a Valuation Officer—
(a) in a case where the value of the asset as returned is in accordance with the estimate made by a registered valuer, if the 3[Assessing Officer] is of opinion that the value so returned is less than its fair market value;
(b) in any other case, if the 3[Assessing Officer] is of opinion—
(i) that the fair market
1[(1) If the Assessing Officer 2[has reason to believe] that the net wealth chargeable to tax in respect of which any person is assessable under this Act has escaped assessment for any assessment year (whether by reason of under-assessment or assessment at too low a rate or otherwise], he may, subject to the other provisions of this section and section 17A, serve on such person a notice requiring him to furnish within such period, 3[***] as may be specified in the notice, a return in the prescribed form and verified in the prescribed manner setting forth the net wealth in respect of which such person is assessable as on the valuation date mentioned in the notice, along with such other particulars as may be required by the notice, and may proceed to assess or reassess such net wealth and also any other net wealth chargeable to tax in respect of which such person is assessable, which has escaped assessment and which comes to hi
1 [(1) No order of assessment shall be made under section 16 at any time after the expiry of two years from the end of the assessment year in which the net wealth was first assessable:
3[Provided that,—
(a) where the net wealth was first assessable in the assessment year commencing on the 1st day of April, 1987, or any earlier assessment year, such assessment may be made on or before the 31st day of March, 1991;
(b) where the net wealth was first assessable in the assessment year commencing on the 1st day of April, 1988, such assessment may be made on or before the 31st day of March, 1992.]
4[Provided further that in case the assessment year in which the net wealth was first assessable is the assessment year commencing on the 1st day of April, 2
(1) Where the return of net wealth for any assessment year under sub-section (1) of section 14 or section 15, or in response to a notice under clause (i) of sub-section (4) of section 16, is furnished after the due date, or is not furnished, the assessee shall be liable to pay simple interest at the rate of 2[3[one per cent.]] for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,—
(a) where the return is furnished after the due date, ending on the date of furnishing of the return, or
(b) where no return has been furnished, ending on the date of completion of the assessment under sub-section (5) of section 16, on the amount of tax payable on the net wealth as determined 4[under sub- section (1) of section 16 or] on regular assessment.
(1) If the 2[Assessing Officer], 3[Joint Commissioner (Appeals)],— 4[Commissioner (Appeals),] 5[Chief Commissioner or Commissioner] or Appellate Tribunal in the course of any proceedings under this Act is satisfied that any person—
6[***]
(b) has 7[***] failed to comply with a notice under sub-section (2) or sub-section (4) of section 16; or
(c) has concealed the particulars of any assets or furnished inaccurate particulars of any assets or debts; he or it may, by order in writing, direct that such person shall pay by way of penalty—
8[ 9[***]
10[(ii) in the cases referred to in clause (b), in addition to the amount of wealth-tax payable by him, a sum which shall not be less than one thousand rupees
(1) If any person,—
(a) being legally bound to state the truth of any matter touching the subject of his assessment, refuses to answer any question put to him by a wealth-tax authority in the exercise of his powers under this Act; or
(b) refuses to sign any statement made by him in the course of any proceedings under this Act, which a wealth-tax authority may legally require him to sign; or
(c) to whom a summons is issued under sub-section (1) of section 37 either to attend to give evidence or produce books of account or other documents at a certain place and time, omits to attend or produce the books of account or documents at the place and time, he shall pay, by way of penalty, a sum which shall not be less than five hundred rupees but which may extend to ten thousand rupees for each such
(1) Notwithstanding anything contained in this Act, the 2[3 [***] Commissioner] may, in his discretion, whether on his own motion or otherwise,—
4[***]
(ii) reduce or waive the amount of penalty imposed or imposable on a person under clause (iii) of sub-section (1) of section 18, it he is satisfied that such person,—
5 [***]
(b) in the case referred to in clause (ii), has, prior to the detection by the 6[Assessing Officer], of the concealment of particulars of assets or of the inaccuracy of particulars furnished in respect of any asset or debt in respect of which the penalty is imposable, voluntarily and in good faith made full and true disclosure of such particulars,
and also has co-operated in any
(1) Notwithstanding anything contained in this Act, where an assessee claims that any question of law arising in his case for an assessment year which is pending before the 2[ Assessing Officer] or any appellate authority (such case being hereafter in this section referred to as the relevant case) is identical with a question of law arising in his case for another assessment year which is pending before the Hight Court or the Supreme Court on a reference under section 27 3[or in appeal under section 27A before the High Court] or in appeal before the Supreme Court under section 29 (such case being hereafter in this section referred to as the other case), he may furnish to the 2[Assessing Officer] or the appellate authority, as the case may be, a declaration in the prescribed form and verified in the prescribed manner, that if the 2[Assessing Officer] or the appellate authority, as the case may be, agrees to apply to the releva
(1) Where a person dies, his executor, administrator or other legal representative shall be liable to pay out of the estate of the deceased person, to the extent to which the estate is capable of meeting the charge, the wealth-tax assessed as payable by such person, or any sum, which would have been payable by him under this Act if he had not died.
(2) Where a person dies without having furnished a return under the provisions of section 14 or after having furnished a return which the 1[Assessing Officer] has reason to believe to be incorrect or incomplete, the 1[Assessing Officer] may make an assessment of the net wealth of such person and determine the wealth-tax payable by the person on the basis of such assessment, and for this purpose may, by the issue of the appropriate notice which would have had to be served upon the deceased person if he had survived, require from the exec
(1) Subject to as hereinafter provided, the net wealth of the estate of a deceased person shall be chargeable to tax in the hands of the executor or executors.
(2) The executor or executors shall for the purposes of this Act be treated as an individual.
(3) The status of the executor or executors shall for the purposes of this Act as regards residence and citizenship be the same as that of the deceased on the valuation date immediately preceding his death.
(4) The assessment of an executor under this section shall be made separately from any assessment that may be made on him in respect of his own net wealth or on the net wealth of the deceased under section 19.
(5) Separate assessments shall be made under this section in respect of the net weal
(1) Where at the time of making an assessment, it is brought to the notice of the 1[Assessing Officer] that a partition has taken place among the members of a Hindu undivided family, and the 1[Assessing Officer], after inquiry, is satisfied that the joint family property has been partitioned as a whole among the various members or group of members in definite portions, he shall record an order to that effect and shall make assessment on the net wealth of the undivided family as such for the assessment year or years, including the year relevant to the previous year in which the partition has taken place, if the partition has taken place on the last day of the previous year and each member or group of members shall be liable jointly and severally for the tax assessed on the net wealth of the joint family as such.
(2) Where the 1[Assessing Officer] is not so satisfied, he may, by ord
Where a partial partition has taken place after the 31st day of December, 1978, among the members of a Hindu undivided family hitherto assessed as undivided,—
(a) such family shall continue to be liable to be assessed under this Act as if no such partial partition had taken place;
(b) each member or group of members of such family immediately before such partial partition and the family shall be jointly and severally liable for any tax, penalty, interest, fine or other sum payable under this Act by the family in respect of any period, whether before or after such partial partition,;
(c) the several liability of any member or group of members aforesaid shall be computed according to the portion of the joint family property allotted to him or it at such partial partition, and the provisions o
(1) 1[Subject to the provisions of sub-section (1A), in the case of assets chargeable to tax under this Act], which are held by a court of wards or an administrator-general or an official trustee or any receiver or manager or any other person, by whatever name called, appointed under any order of a court to manage property on behalf of another, or any trust appointed under a trust declared by a duly executed instrument in writing, whether testamentary or otherwise (including a trustee under a valid deed of wakf), the wealth-tax shall be levied upon and recoverable from the court of wards, administrator-general, official trustee, receiver, manager or trustee, as the case may be, in the like manner and to the same extent as it would be leviable upon and recoverable from the person 2[on whose behalf or for whose benefit] the assets are held, and the provisions of this Act shall apply accordingly.
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2[ 3[Notwithstanding anything contained in clause (1) of section 5, where any property is held] under trust for any public purpose of a charitable or religious nature in India, and
4[(i) any part of such property or any income of such trust [whether derived from such property or from voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2 of the Income-tax Act], being a trust created on or after the 1st day of April, 1962 enures, directly or indirectly, for the benefit of any person referred to in sub-section (3) of section 13 of the Income-tax Act, or
(ii) any part of the income of the trust [whether derived from such property or from voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2 of the Income-tax Act], being a trust created on or after the 1st day of April, 1962 enures
(1) Where assets chargeable to tax under this Act are held by an association of persons, other than a company or co-operative society 2[or society registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India], and the individual shares of the members of the said association in the income or assets or both of the said association on the date of its formation or at any time thereafter are indeterminate or unknown, the wealth-tax shall be levied upon and recovered from such association in the like manner and to the same extent as it would be leviable upon and recoverable from an individual who is a citizen of India and resident in India for the 3[purposes of this Act 4[***]].
(2) Where any business or profession carried on by an association of persons referred to in sub-section (1) has been discontinued o
(1) Where the person liable to tax under this Act resides outside India, the tax may be levied upon and recovered from his agent, and the agent shall be deemed to be, for all the purposes of this Act, the assessee in respect of such tax.
(2) Any person employed by or on behalf of a person referred to in sub-section (1) or through whom such person is in the receipt of any income, profits or gains, or who is in possession or has custody of any asset of such person and upon whom the 1[Assessing Officer] has caused a notice to be served of his intention of treating him as the agent of such person shall, for the pusposes of sub-section (1), be deemed to be the agent of such person.
2[***]
3[(3) No person shall be deemed to be the agent of any person residing outside India unless he has had an op
In this Chapter, unless the context otherwise requires,—
(a) “Bench” means a Bench of the Settlement Commissiom;
3[(b) “case” means any proceeding for assessment under this Act, of any person in respect of any assessment year or assessment years which may be pending before an Assessing Officer on the date on which an application under sub-section (1) of section 22C is made:
Provided that—
(i) a proceeding for assessment or reassessment under section 17;
(ii) a proceeding for making fresh assessment in pursuance of an order under section 23A or section 24 or section 25, setting aside or cancelling an assessment;
(iii) a proceeding for assessment or reasses
1[(1) The Central Government shall constitute a Commission to be called the Wealth-tax Settlement Commission 2[***] for the settlement of cases under this Chapter.
(2) The Settlement Commission shall consist of a Chairman 3[and as many Vice-Chairmen and other members as the Central Government thinks fit] and shall function within the Department of the Central Government dealing with direct taxes.
4[***]
(3) The Chairman 5[, Vice-Chairmen] and other members of the Settlement Commission shall be appointed by the Central Government from amongst persons of integrity and outstanding ability, having special knowledge of, and experience in, problems relating to direct taxes and business accounts:
Provided that, where a member of the Board is appointed
(1) Subject to the other provisions of this Chapter, the jurisdiction, powers and authority of the Settlement Commission may be exercised by Benches thereof.
(2) Subject to the other provisions of this section, a Bench shall be presided over by the Chairman or a Vice-Chairman and shall consist of two other Members.
(3) The Bench for which the Chairman is the Presiding Officer shall be the principal Bench and the other Benches shall be known as additional Benches.
(4) Notwithstanding anything contained in sub-sections (1) and (2), the Chairman may authorise the Vice-Chairman or other Member appointed to one Bench to discharge also the functions of the Vice-Chairman or, as the case may be, other Member of another Bench.
(5) Notwithstanding anythin
(1) In the event of the occurrence of any vacancy in the office of the Chairman by reason of his death, resignation or otherwise, the Vice-Chairman or, as the case may be, such one of the Vice-Chairmen as the Central Government may, by notification in the Official Gazette, authorise in this behalf, shall act as the Chairman until the date on which a new Chairman, appointed in accordance with the provisions of this Chapter to fill such vacancy, enters upon his office.
(2) When the Chairman is unable to discharge his functions owing to absence, illness or any other cause, the Vice-Chairman or, as the case may be, such one of the Vice-Chairmen as the Central Government may, by notification in the Official Gazette, authorise in this behalf, shall discharge the functions of the Chairman until the date on which the Chairman resumes his duties. ]
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If the Members of a Bench differ in opinion on any point, the point shall be decided according to the opinion of the majority, if there is a majority, but if the Members are equally divided, they shall state the point or points on which, they differ, and make a reference to the Chairman who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more of the other Members of the Settlement Commission and such point or points shall be decided according to the opinion of the majority of the Members of the Settlement Commission who have heard the case, including those who first heard it. ]
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1. Chapter VA (Containing sections 22A to 22M) ins. by Act 41 of 1975, sec. 93 (w.e.f. 1-4-1976).
1[(1) An assessee may, at any stage of a case relating to him, make an application in such form and in such manner as may be prescribed, and containing a full and true disclosure of his wealth which has not been disclosed before the 3[Assessing Officer], the manner in which such wealth has been derived, the additional amount of wealth-tax payable on such wealth and such other particulars as may be prescribed, to the Settlement Commission to have the case settled and any such application shall be disposed of in the manner hereinafter provided:
4[Provided that no such application shall be made unless such wealth-tax and the interest thereon, which would have been paid under the provisions of this Act had the wealth declared in the application been declared in the return of wealth before the Assessing Officer on the date of application, has been paid on or before the date of making t
1[(1) On receipt of an application under section 22C, the Settlement Commission shall, within seven days from the date of receipt of the application, issue a notice to the applicant requiring him to explain as to why the application made by him be allowed to be proceeded with, and on hearing the applicant, the Settlement Commission shall, within a period of fourteen days from the date of the application, by an order in writing, reject the application or allow the application to be proceeded with:
Provided that where no order has been passed within the aforesaid period by the Settlement Commission, the application shall be deemed to have been allowed to be proceeded with.]
3[***]
(2) A copy of every order under sub-section (1) shall be sent to the applicant and to the Commissioner.
(1) Where, during the pendency of any proceeding before it, the Settlement Commission is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, it may, by order, attach provisionally any property belonging to the applicant in the manner provided in the Second Schedule to the Income-tax Act as made applicable to this Act by section 32:
Provided that where a provisional attachment made under section 34C is pending immediately before an application is made under section 22C, an order under this sub-section shall continue such provisional attachment upto the period upto which an order made under section 34C would have continued if such application had not been made:
Provided further that where the Settlement Commission passes an order under this sub-section after the expiry of the period re
Legal Comments
"Scope" - Section 22(d)(d) deals with the procedure and consequences relating to the confirmation or enforcement actions under section 22C in the context of applications to the Settlement Commission, including provisional attachments to protect revenue - [THE WEALTH-TAX ACT, 1957 ARRANGEMENT OF SECTIONS]
"Purpose" - Section 22 forms part of the scheme governing settlement and assessment, providing for adjudication and settlement of cases; 22C–22D outline the Settlement Commission's role and the procedural framework - [WEALTH-TAX ACT 1957 - ARRANGEMENT OF SECTIONS]
"Process triggered" - On receipt of an application under section 22C, the Settlement Commission has authority to consider and order provisional attachments to protect revenue, pending final orders - [THE WEALTH-TAX ACT, 1957 ARRANGEMENT OF SECTIONS / 22D]
"Provisional attachment" - Section 22D expressly contemplates the Settlement Commission’s power to order provisional attachment to protect revenue while proceedings are pending - [THE WEALTH-TAX ACT, 1957 ARRANGEMENT OF SECTIONS / 22D]
"Protection of revenue" - The provision aims to safeguard the government’s interests by enabling provisional measures during settlement proceedings; this aligns with the statute’s broader objective of revenue protection - [THE WEALTH-TAX ACT, 1957 ARRANGEMENT OF SECTIONS / 22D]
"Application focus" - Section 22C governs applications to the Settlement Commission, including admissibility, scope, and procedural prerequisites that may cascade into 22D’s provisional orders - [THE WEALTH-TAX ACT, 1957 ARRANGEMENT OF SECTIONS / 22C]
"Provisional measures" - The text envisions provisional attachment as a temporary may be used to secure assets or funds that could be subject to settlement outcomes - [THE WEALTH-TAX ACT, 1957 ARRANGEMENT OF SECTIONS / 22D]
"Link to assessment" - Section 22D’s mechanism operates within the context of ongoing assessment or reassessment proceedings under the Act, ensuring continuity of revenue protection during settlement - [THE WEALTH-TAX ACT, 1957 ARRANGEMENT OF SECTIONS / 22D]
" Judicial oversight" - Provisional attachments under 22D are subject to procedural safeguards and must align with the Settlement Commission’s orders under section 22C and the Act’s statutory framework - [THE WEALTH-TAX ACT, 1957 ARRANGEMENT OF SECTIONS / 22D]
"Remedial framework" - The provision forms part of a remedial toolkit for tax authorities to secure compliance and avoid dissipation of assets while settlement applications are adjudicated - [THE WEALTH-TAX ACT, 1957 ARRANGEMENT OF SECTIONS / 22D]
"Relation to penalties" - While 22D focuses on provisional measures, other sections in Chapter VIII address penalties for non-compliance, delayed furnishing, or concealment; together they create a composite compliance regime - [THE WEALTH-TAX ACT, 1957 / Chapter VIII]
"Procedural sequencing" - The interplay between 22C (application) and 22D (provisional attachment) illustrates the Act’s stepwise approach from application to protective orders before final settlement or disposition - [THE WEALTH-TAX ACT, 1957 / 22C, 22D]
"Limitations and scope caveats" - The authoritativeness and scope of provisional attachments under 22D would be constrained by the Settlement Commission’s jurisdiction and the Act’s procedural limits; explicit limitations would be drawn from the full text of the sections and related case law - [THE WEALTH-TAX ACT, 1957 ARRANGEMENT OF SECTIONS / 22D]
"Enforcement consequence" - Provisional attachments under 22D are a mechanism to ensure potential dues remain recoverable; non-compliance could trigger further penalties under the Act - [THE WEALTH-TAX ACT, 1957 ARRANGEMENT OF SECTIONS / 22D]
"Policy rationale" - The provision reflects a policy objective to balance taxpayer rights with effective revenue collection by enabling interim safeguards during settlement proceedings - [THE WEALTH-TAX ACT, 1957 ARRANGEMENT OF SECTIONS / 22D]
"Practical note" - For practitioners, the key takeaway is to anticipate possible provisional attachments when a Settlement Commission application under 22C is filed, potentially affecting the taxpayer’s control over assets until settlement is resolved - [THE WEALTH-TAX ACT, 1957 ARRANGEMENT OF SECTIONS / 22D]
"Cross-referencing" - Relevant cross-references include Section 22C (application to Settlement Commission) and Section 22E (other provisions in the settlement framework); together they map the settlement process and protective measures - [THE WEALTH-TAX ACT, 1957 ARRANGEMENT OF SECTIONS / 22C, 22E]
"Punishment linkage" - While 22D itself addresses provisional measures, penalties for non-compliance with settlement directions or related notices appear in other sections (e.g., penalties for failure to furnish returns, concealment, etc.), illustrating a cohesive deterrence framework - [WEALTH-TAX ACT, 1957 / Penalty Provisions]
"Summary takeaway" - Section 22D empowers the Settlement Commission to order provisional attachment on receipt of an application under 22C to safeguard revenue during settlement proceedings, reinforcing the Act’s enforcement and settlement machinery - [THE WEALTH-TAX ACT, 1957 ARRANGEMENT OF SECTIONS / 22D]
If the Settlement Commission is of the opinion (the reasons for such opinion to be recorded by it in writing) that, for the proper disposal of the case pending before it, it is necessary or expedient to re-open any proceeding connected with the case, but which has been completed under this Act by any Wealth-tax authority before the application under section 22C was made, it may, with the concurrence of the applicant, re-open such proceeding and pass such order thereon as it thinks fit as if the case in relation to which the application for settlement had been made by the applicant under that section covered such proceeding also:
2[Provided that no proceeding shall be reopened by the Settlement Commission under this section if the period between the end of the assessment year to which such a proceeding relates and the date of application for settlement under section 22C exceeds nin
Legal Comments
Section 22(e) – Summary: The provided sources largely discuss wealth tax definitions, assets, and related provisions; there is no direct extract or authoritative citation specifically for Section 22(e) in the supplied material. Nevertheless, we can provide observations tying Section 22-related concepts to the scope of wealth tax and asset treatment as context. [Source: datasets listed, e.g., general Wealth-tax Act references]
"Assets" concept – Summary: Under Wealth-tax Act, the term assets includes properties movable and immovable unless excluded; Section 2(ea) defines assets to include houses and other capital assets, guiding inclusion in net wealth. This underpins the relevance of asset transfers (direct or indirect) for Section 4(1)(a) in wealth computation. [Source: Shah Rukh Khan VS Assistant Commissioner of Wealth Tax, Central Circle-29]
Indirect transfer concept – Summary: The case discussions show that arrangements (e.g., loans to spouse used to acquire assets) can be treated as indirect transfers of assets to the spouse, triggering inclusion in the net wealth of the individual under Section 4(1)(a)(i). This demonstrates interpretive reach of wealth provisions beyond literal transfer. [Source: Shah Rukh Khan VS Assistant Commissioner of Wealth Tax, Central Circle-29]
Essential ingredients in wealth transfer analysis – Summary: Key ingredients include (i) existence of a loan or transfer by the individual, (ii) transfer to spouse, (iii) assets acquired in the spouse’s name, (iv) whether consideration was adequate, and (v) whether such transfer constitutes indirect transfer of wealth to be included in assessable wealth. [Source: Shah Rukh Khan VS Assistant Commissioner of Wealth Tax, Central Circle-29]
Scope of Section 4(1)(a)(i) – Summary: Section 4(1)(a)(i) contemplates inclusion of assets held by the spouse to whom assets are transferred by the individual, directly or indirectly, otherwise than for adequate consideration or in connection with an agreement to live apart. This supports inclusion based on indirect transfers. [Source: Shah Rukh Khan VS Assistant Commissioner of Wealth Tax, Central Circle-29]
Net wealth computation framework – Summary: Net wealth is computed by including the value of assets on the valuation date; transfers that construct or reallocate assets to a spouse can affect the net wealth even if ownership appears shifted. This reflects in reassessment considerations. [Source: Shah Rukh Khan VS Assistant Commissioner of Wealth Tax, Central Circle-29]
Role of Section 2(ea) – Summary: The definition of assets under Section 2(ea) supports understanding what constitutes assets for wealth tax purposes and helps identify what can be included when wealth is transferred or repackaged through spouses. [Source: Shah Rukh Khan VS Assistant Commissioner of Wealth Tax, Central Circle-29]
Case law context – Summary: Decisions such as CIT v. Vinoda Rao and related matters (referenced in the materials) illustrate that money advanced to a spouse and recorded in books can still be scrutinized for indirect asset transfer, affecting wealth tax outcomes. [Source: Shah Rukh Khan VS Assistant Commissioner of Wealth Tax, Central Circle-29]
Legislative cross-reference – Summary: The Wealth-tax Act links asset definitions (Section 2(ea)) with assessment provisions (Section 16(3) and related grounds) to determine if wealth escaped assessment due to transfers; Section 4(1)(a) provides mechanism for inclusion. [Source: Shah Rukh Khan VS Assistant Commissioner of Wealth Tax, Central Circle-29]
Definition comparison – Summary: The Act defines capital assets (Section 2(14) for income tax context) and assets (Section 2(ea)) in parallel to clarify what is within the tax net, aiding interpretation of Section 22(e) implications in wealth transfers. [Source: COMMISSIONER OF INCOME-TAX VS EAST INDIA CHARITABLE TRUST; Avtar Singh Rangwala VS Commissioner Of Income-tax-cum-wealth-tax; Jai Gopal Mehra VS Income-tax Officer – context on wealth/asset definitions]
Agricultural land discussion – Summary: Although unrelated to Section 22(e) directly, judgments on agricultural land vs wealth asset classifications demonstrate the broader judicial approach to characterizing assets for wealth tax and the importance of use, environment, and land characterization in wealth determinations. [Source: Avtar Singh Rangwala VS Commissioner Of Income-tax-cum-wealth-tax]
Reassessment and notice validity context – Summary: The referenced judgments discuss validity of notices and assessment actions in wealth tax contexts, which indirectly relate to how Section 22e-type provisions might be invoked in reassessments where indirect asset transfers are alleged. [Source: Jai Gopal Mehra VS Income-tax Officer]
Income vs wealth tax interface – Summary: Several references compare wealth-tax asset concepts with income-tax concepts (capital assets vs investments/deposits), illustrating the breadth of wealth assessment and the potential reach of Section 22(e)-type analyses in asset reallocation scenarios. [Source: COMMISSIONER OF INCOME-TAX VS EAST INDIA CHARITABLE TRUST]
Public sector investment as asset – Summary: The materials discuss that deposits or investments in public sector entities can be considered assets and capital assets, which can be relevant when tracing wealth transfers via loans or deposits through family members. [Source: COMMISSIONER OF INCOME-TAX VS EAST INDIA CHARITABLE TRUST]
Section 11/13 references (trusts) – Summary: While not about Section 22(e), case law discusses treatment of investments/deposits and their inclusion/exclusion under wealth/charitable trust contexts, showing broader treatment of assets and their tax consequences. [Source: COMMISSIONER OF INCOME-TAX VS EAST INDIA CHARITABLE TRUST]
Territorial scope and valuation dates – Summary: The wealth tax framework uses valuation dates to determine asset values; transfers affecting asset ownership around these dates can influence net wealth, which is relevant to how indirect transfers might be treated under Section 4(1)(a). [Source: Avtar Singh Rangwala VS Commissioner Of Income-tax-cum-wealth-tax; Jai Gopal Mehra VS Income-tax Officer]
Past jurisprudence on agricultural land – Summary: In wealth tax jurisprudence, determining whether land is agricultural affects exclusion from net wealth; such principles illustrate how asset characterization can affect Section 22(e)-like outcomes in wealth-tax contexts via asset definition. [Source: Avtar Singh Rangwala VS Commissioner Of Income-tax-cum-wealth-tax]
Reassessment grounds – Summary: Some judgments indicate grounds regarding validity of reassessment or the treatment of wealth in assessments; while not Section 22(e) text, they reflect how courts handle wealth leakage and asset transfers in reassessment, relevant to Section 22(e) implications. [Source: Shah Rukh Khan VS Assistant Commissioner of Wealth Tax, Central Circle-29]
Practical takeaway – Summary: For wealth-tax scenarios involving transfers to spouses via loans or indirect arrangements, Section 4(1)(a)(i) provides a plausible basis for including transferred assets in the original individual's net wealth, reinforcing the need for arm’s-length transactions and adequate consideration. [Source: Shah Rukh Khan VS Assistant Commissioner of Wealth Tax, Central Circle-29]
Note on availability of direct Section 22(e) text – Summary: The supplied sources do not contain a direct verbatim extract of Section 22(e) of the Wealth-Tax Act, 1957; the analysis relies on surrounding definitions and case law to infer the section’s practical implications. [Source: entire provided set]
(1) In addition to the powers conferred on the Settlement Commission under this Chapter, it shall have all the powers which are vested in a Wealth-tax authority under this Act.
(2) Where an application made under section 22C has been allowed to be proceeded with under section 22D, the Settlement Commission shall, until an order is passed under sub-section (4) of section 22D, have, subject to the provisions of sub-section (3) of that section, exclusive jurisdiction to exercise the powers and perform the functions of a Wealth-tax authority under this Act in relation to the case:
2[Provided that where an application has been made under section 22C on or after the 1st day of June, 2007, the Settlement Commission shall have such exclusive jurisdiction from the date on which the application was made:
&n
No person shall be entitled to inspect, or obtain copies of, any reports made by any Wealth-tax authority to the Settlement Commission; but the Settlement Commission may, in its discretion, furnish copies thereof to any such person on an application made to it in this behalf and on payment of the prescribed fee:
Provided that, for the purpose of enabling any person whose case is under consideration to rebut any evidence brought on the record against him in any such report, the Settlement Commission shall, on an application made in this behalf and on payment of the prescribed fee by such person, furnish him with a certified copy of any such report or part thereof relevant for the purpose. ]
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1. Chapter VA (Containing sections 22A to 22M) ins. by Act 41 of 1975, sec. 93 (w.e.f. 1-4-1
(1) The Settlement Commission may, if it is satisfied that any person who made the application for settlement under section 22C has co-operated with the Settlement Commission in the proceedings before it and has made a full and true disclosure of his net wealth and the manner in which such wealth has been acquired, grant to such person, subject to such conditions as it may think fit to impose, immunity from prosecution for any offence under this Act or under the Indian Penal Code (45 of 1860) or under any other Central Act for the time being in force 2[and also (either wholly or in part) from the imposition of any penalty] under this Act, with respect to the case covered by the settlement:
3[Provided that no such immunity shall be granted by the Settlement Commission in cases where the proceedings for the prosecution for any such offence have been instituted before the date of rec
(1) Where—
(i) an application made under section 22C on or after the 1st day of June, 2007 has been rejected under sub-section (1) of section 22D; or
(ii) an application made under section 22C has not been allowed to be proceeded with under sub-section (2A) or further proceeded with under sub-section (2D) of section 22D; or
(iii) an application made under section 22C has been declared as invalid under sub-section (2C) of section 22D; or
(iv) in respect of any other application made under section 22C, an order under sub-section (4) of section 22D has not been passed within the time or period specified under sub-section (4A) of section 22D, the proceedings before the Settlement Commission shall abate on the specified date.
&n
Where an application made under section 22C on or after the 1st day of June, 2007, is rejected under sub-section (1) of section 22D, or any other application made under section 22C is not allowed to be proceeded with under sub-section (2A) of section 22D or is declared invalid under sub-section (2C) of section 22D or has not been allowed to be further proceeded with under sub-section (2D) of section 22D or an order under sub-section (4) of section 22D has not been passed within the time or period specified under sub-section (4A) of section 22D, the Assessing Officer shall allow the credit for the tax and interest paid on or before the date of making the application or during the pendency of the case before the Settlement Commission.] ]
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1. Chapter VA (Containing sections 22A to 22M) ins. by Act 41 of 1975, sec. 93 (w.e.f. 1-4-
Every order of settlement passed under sub-section (4) of Section 22D shall be conclusive as to the matters stated therein and no matter covered by such order shall, save as otherwise provided in this Chapter, be re-opened in any proceeding under this Act or under any other law for the time being in force.]
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1. Chapter VA (Containing sections 22A to 22M) ins. by Act 41 of 1975, sec. 93 (w.e.f. 1-4-1976).
Any sum specified in an order of settlement passed under sub-section (4) of section 22D may, subject to such conditions, if any, as may be specified therein, be recovered, and any penalty for default in making payment of such sum may be imposed and recovered in accordance with the provisions of section 32 by the 2[Assessing Officer] having jurisdiction over the person who made the application for settlement under section 22C. ]
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1. Chapter VA (Containing sections 22A to 22M) ins. by Act 41 of 1975, sec. 93 (w.e.f. 1-4-1976).
2. Subs. by Act 4 of 1988, sec. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988).
(1) Where,—
(i) an order of settlement passed under sub-section (4) of section 22D provides for the imposition of a penalty on the person who made the application under section 22C for settlement, on the ground of concealment of particulars of his net wealth; or
(ii) after the passing of an order of settlement under the said sub-section (4) in relation to a case, such person is convicted of any offence under Chapter VIII in relation to that case; or
(iii) the case of any such person was sent back to the Assessing Officer by the Settlement Commission on or before the 1st day of June, 2002,
then, he shall not be entitled to apply for settlement under section 22C in relation to any other matter.
(2) Whe
Any proceeding under this Chapter before the Settlement Commission shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian Penal Code (45 of 1860). ]
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1. Chapter VA (Containing sections 22A to 22M) ins. by Act 41 of 1975, sec. 93 (w.e.f. 1-4-1976).
[ Rep. by Act 11 of 1987, sec. 87 (w.e.f. 1-6-1987).] ]
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1. Chapter VA (Containing sections 22A to 22M) ins. by Act 41 of 1975, sec. 93 (w.e.f. 1-4-1976).
(1) 3[Subject to the provisions of sub-section (lA), any person]—
(a) objecting to the amount of 4 [net wealth] determined under this Act; or
(b) objecting to the amount of wealth-tax determined as payable by him under this Act; or
(c) denying his liability to be assessed under this Act; or
5[(d) objecting to any penalty imposed by the Assessing Offcer under section 18 6[***];]
(e) objecting to any order of the 2[Assessing Officer] under sub-section (2) of section 20; or
(f) objecting to any penalty imposed by the 2[Assessing Officer] under the provisions of 7[section 221 ] of the Income-tax Act as applied under section 32 for the purposes of wealth-tax;8
(1) Any person—
(a) objecting to the amount of net wealth determined under this Act, or
(b) objecting to the amount of wealth-tax determined as payable by him under this Act; or
(c) denying his liability to be assessed under this Act; or
(d) objecting to any penalty imposed by the Assessing Officer under section 18 or section 18A; or
(e) objecting to any order of the Assessing Officer under sub-section (2) of section 20; or
(f) objecting to any penalty imposed by the Assessing Officer under the provisions of section 221 of the Income-tax Act as applied under section 32 for the purposes of wealth-tax; or
(g) ob
1[(1) An assessee objecting to an order passed by the 1[Deputy Commissioner (Appeals)] 3or the Commissioner (Appeals) under section 18 or section 18A or section 23, 4[section 23A] or sub-section (2) of section 37, 5[***] may appeal to the Appellate Tribunal within sixty days of the date on which the order is communicated to him.]
(2) The Commissioner may, if he is not satisfied as to the correctness of any order passed by 6[a Commissioner (Appeals) under sub-section (10) of section 23A] direct the 7[Assessing Officer] to appeal to the Appellate Tribunal against such order, and such appeal may be made at any time before the expiry of sixty days of the date on which the order is communicated to the Commissioner.
8[(2A) The7[Assessing Officer] or the assessee, as the case may be, on receipt of notice that an appeal against the order of 9[
(1) The Commissioner may, either of his own motion or on application made by an assessee in this behalf, call for the record of any proceeding under this Act in which an order has been passed by any authority subordinate to him, and may make such inquiry, or cause such inquiry to be made, and, subject to the provisions of this Act, pass such order thereon, not being an order prejudicial to the assessee, as the Commissioner thinks fit:
Provided that the Commissioner shall not revise any order under this sub-section in any case—
(a) where an appeal against the order lies to the 1[Deputy Commissioner (Appeals)] 1[or to the Commissioner (Appeals)] or to the Appellate Tribunal, the time within which such appeal can be made has not expired or in the case of an appeal 2[to the Commissioner (Appeals) or] to the Appellate Tribunal the assessee
[or section 18A] or sub-section (2) of section 25], 5[or an order passed by the Director-General or Director under Section 18A] may appeal to the Appellate Tribunal within sixty days of the date on which the order is communicated to him.
(2) An appeal to the Appellate Tribunal under sub-section (1) shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by 6[a fee of 7[two hundred rupees]].
(3) The provisions of 8[sub-section (3), (5), (9) and (10)] of section 24 shall apply in relation to any appeal under this section as they apply in relation to any appeal under that section.
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1. Subs. by Act 4 of 1988, sec. 127, for “Commissioners” (w.e.f. 1-4-1988).
&n
1[(1) The assessee or the 2[Chief Commissioner or Commissioner] may, within sixty days of the date upon which he is served with notice of an order 3[passed before the 1st day of June, 1999] under section 24 or section 264[or clause (e) of sub-section (1) or section 35], by application in the prescribed form accompanied, where the application is made by the assessee, by 5[a fee of 6[two hundred rupees]] require the Appellate Tribunal to refer to the High Court any qestion of law arising out of such order and, subject to the other provisions contained in this section, the Appellate Tribunal shall, within one hundred and twenty days of the receipt of such application, draw up a statement of the case and refer it to the High Court.
(2) The Appellate Tribunal may, if it is satisfied that the applicant was prevented by sufficient cause from presenting the application within the period s
(1) The assessee or the Chief Commissioner or Commissioner may within one hundred twenty days of the day upon which he is served with notice of an order under section 24 or section 26 or clause (e) of sub-section (1) of section 35, file on or after the 1st day of October, 1998 6 [but before the date of establishment of the National Tax Tribunal appeal before the High Court.]
(2) An appeal shall lie to the High Court 2[before the date of establishment the National Tax Tribunal] from every order passed in appeal by the Appellate Tribunal, under sub-section (1) of section 24 only if the High Court is satisfied that the case involves a substantial question of law.
(3) In an appeal under this section, the Memorandum of Appeal shall precisely state the substantial question of law involved in the appeal.
&nbs
When a case has been stated to the High Court 1[under section 27, or an appeal filed before the High Court under section 27A], it shall be heard by a Bench of not less than two Judges of the High Court and shall be decided in accordance with the opinion of such Judges or of the majority of such Judges, if any:
Provided that where there is no such majority, the Judges shall state the point of law upon which they differ and the case shall then be heard upon that point only by one or more of the Judges of the High Court, and such point shall be decided according to the opinion of the majority of the Judges who have heard the case, including those who first heard it.
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1. Subs. by Act 21 of 1998, sec. 73, for “under section 27” (w.e.f. 1-10-1998).
(1) An appeal shall lie to the Supreme Court from any judgement of the High Court delivered 1[before the date of establishment the National Tax Tribunal] on a case stated 2[under section 27 or an appeal filed under section 27A] in any case which the High Court certified as a fit case for appeal to the Supreme Court.
(2) Where the judgment of the High Court is varied or reversed on appeal under this section, effect shall be given to the order of the Supreme Court in the manner provided in sub-section (6) of section 27 3[or in sub-section (7) of section 27A].
(3) The High Court may, on application made to it for the execution of any order of the Supreme Court in respect of any costs awarded by it, transmit the order for execution to any court subordinate to the High Court.
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&nb
Notwithstanding that a reference has been made to the High Court or the Supreme Court, or an appeal has been preferred to the Supreme Court,2[under this Act before the commencement of the National Tax Tribunal, Act 2005 (49 of 2005)] wealth-tax shall be payable in accordance with the assessment made in the case.]
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1. Ins. by Act 46 of 1964, sec. 27 (w.e.f. 1-4-1965).
2. Ins. by Act 49 of 2005, sec. 30 and Schedule, Pt. II-5 (w.e.f. 28-12-2005).
In this Chapter, “High Court” means–
(i) in relation to any State, the High Court of that State;
2[(ii) in relation to the Union territory of Delhi, the High Court of Delhi;
3[***]
4[(iii) in relation to the Union territories of Arunachal Pradesh and Mizoram, the Gauhati High Court (the High Court of Assam, Nagaland, Meghalaya, Manipur and Tripura);]
(iv) in relation to the Union territory of Andaman and Nicobar Islands, the High Court at Calcutta;
(v) in relation to the Union territory of 5[Lakshadweep], the High Court of Kerala;
(vi) in relation to the Union territories of Dadra and Nagar Haveli and Goa, Dam
When any tax, interest, penalty, fine or any other sum is payable in consequence of any order passed under this Act, the 2[Assessing Officer] shall serve upon the assessee a notice of demand in the prescribed form specifying the sum so payable.]
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1. Subs. by Act 46 of 1964, sec. 28, for section 30 (w.e.f. 1-4-1965).
2. Subs. by Act 4 of 1988, sec. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988).
(1) Any amount specifed as payable in a notice of demand under section 30 shall be paid within 2[thirty days] of the service of the notice at the place and to the person mentioned in the notice:
Provided that, where the 3[Assessing Officer] has any reason to believe that it will be detrimental to revenue if the full period of 2[thirty days] aforesaid is allowed, he may, with the previous approval of the 4[Joint Commissioner, direct that the sum specified in the notice of demand shall be paid within such period being a period less than the period of 2[thirty days] aforesaid, as may be specified by him in the notice of demand.
(2) If the amount specifed in any notice of demand under section 30 is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at 5 [ 6[ 7 [one per cent.]] for
The provisions contained in 2[sections 221 to 227, 228A], 229, 231 and 232 of the Income-tax Act and the Second and Third Schedules to that Act and any rules made thereunder shall, so far as may be, apply as if the said provisions were provisions of this Act and referred to wealth-tax and sums imposed by way of penalty, fine and interest under this Act instead of to income-tax and sums imposed by way of penalty, fine and interest under that Act 3[and to the corresponding wealth-tax authorities instead of to the income-tax authorities specified therein].
Explanation I. —Any reference to section 173 and sub-section (2) or sub-section (6) or sub-section (7) of section 220 of the Income-tax Act in the said provisions of that Act or the rules made thereunder shall be construed as references to sub-section (7) of section 22 and sub-section (2) or sub-section (6) or sub-section (7) of se
(1) Where by reason of the provisions contained in section 4, the value of any assets transferred to any of the persons mentioned in that section have to be included in the net wealth of an individual, the person in whose name such assets stand shall, notwithstanding anything contained in any law to the contrary, be liable, on the service of a notice of demand by the 1[Assessing Officer] in this behalf, to pay that portion of the tax assessed on the assessee as is attributable to the value of the asset standing in his name as aforesaid:
Provided that where any such asset is held jointly by more than one person, they shall be jointly and severally liable to pay the tax as is attributable to the value of the asset so jointly held.
(2) Where any such person as is referred to in sub-section (I) defaults in making payment of any tax demande
[Rep. by the Wealth-tax Act, 1964 (46 of 1964), sec. 29 (w.e.f. 1-4-1965).]
(1) Where, as a result of any order passed in appeal or other proceeding including a rectification proceeding under this Act, refund of any amount becomes due to the assessee, the 2[Assessing Officer] shall, except as otherwise provided in this Act, refund the amount to the assessee without his having to make any claim in that behalf:
3[Provided that where, by the order aforesaid;
(a) an assessment is set aside or cancelled and an order of fresh assessment is directed to be made, the refund, if any, shall become due only on the making of such fresh assessment;
(b) the assessment is annulled, the refund shall become due only of the amount, if any, of the tax paid in excess of the tax chargeable on the 4[net wealth) returned by the assessee.]
5[(2) W
Notwithstanding anything contained in this Act, any assessee who is entitled to or required to attend before any wealth-tax authority or the Appellate Tribunal in connection with any matter relating to the valuation of any asset, except where he is required under this Act to attend in person, may attend by a registered valuer.]
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1. Chapter VIIB (containing sections 34AA to 34AD) ins. by Act 45 of 1972, sec. 14 (w.e.f. 15-11-1972).
(1) The 2[Chief Commissioner or Director-General] shall maintain a register to be called the Register of Valuers in which shall be entered the names and addresses of persons registered under sub-section (2) as valuers.
(2) Any person who possesses the qualifications prescribed in this behalf may apply to the 2[Chief Commissioner or Director-General] in the prescribed form for being registered as a valuer under this section:
Provided that different qualifications may be prescribed for valuers of different classes of assets.
(3) Every application under sub-section (2) shall be verified in the prescribed manner, shall be accompanied by such fees as may be prescribed and shall contain a declartion to the effect that the applicant will
(i) make an im
(1) No person, either alone or in partnership with any other person, shall practise, describe himself or hold himself out as a registered valuer for the purposes of this Act or permit himself to be so described or held out, unless he is registered as a valuer or, as the case may be, unless he and all his partners are so registered under this Chapter.
(2) No company or other body corporate shall practise, describe itself or hold itself out as registered valuers for the purposes of this Act or permit itself to be so described or held out. ]
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1. Chapter VIIB (containing sections 34AC) ins. by Act 45 of 1972, sec. 14 (w.e.f. 15-11-1972).
Where any person who is registered as a valuer under section 34AB or who has made an application for registration as a valuer under that section is, at any time thereafter;
(a) convicted of any offence and sentenced to a term of imprisonment; or
(b) in a case where he is a member of any association or institution established in India having as its object the control, supervision, regulation or encouragement of the profession of architecture, accountancy, or company secretaries of such other profession as the Board may specify in this behalf by notification in the Official Gazette, found guilty of misconduct in his professional capacity, by such association or institution,
he shall immediately after such conviction or, as the case may be, finding, intimate the particulars thereof 3[to the Ch
(1) The 2[Chief Commissioner or Director-General] may remove the name of any person from the register of valuers where 3[he is satisfied] after giving that person a reasonable opportunity of being heard and after such further inquiry, if any, as 4 [he thinks fit] to make;
(i) that his name has been entered in the register by error or on account of misrepresentation or suppression of a material fact;
(ii) that he has been convicted of any offence and sentenced to a term of imprisonment or has been guilty of misconduct in his professional capacity which, in the opinion of the 2[Chief Commissioner or Director-General], renders him unfit to be kept in the register.
(2) The 5[Chief Commissioner or Director-General] may, on application and on sufficient cause being shown, restore to the register
(1) Notwithstanding anything contained in this Chapter, every person whose name is included in the register of valuers immediately before the 1st day of June, (1988), shall, if he intends to continue to be registered under this Act, make an application under sub-section (2) of section 34AB within a period of three months from that date, for being registered aftesh as a valuer under this Chapter and the provisions of sub-section (3) of that section and the rules made thereunder shall be applicable in respect of the verification of the application; the fees that shall accompany such application and the declaration to be made by the applicant.
(2) The provisions of this Chapter regarding the registration of a person as a valuer and other matters shall, so far as may be, apply to every application made under sub-section (1).
(3) Every appl
(1) Where, during the pendency of any proceeding under this Act or after the completion thereof, but before the service of notice under rule 2 of the Second Schedule to the Income-tax Act as made applicable to this Act by section 32, any assessee creates a charge on, or parts with (by way of sale, mortgage gift, exchange or any other mode of transfer whatsoever) the possession of any of his assets in favour of any other person, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the assessee as a result of the completion of the proceeding or otherwise:
Provided that such charge or transfer shall not be void, if it is made
(i) for adequate consideration and without notice of the pendency of such proceeding or, as the case may be, without notice of such tax or other sum payable by
(1) Where, during the pendency of any proceeding for the assessment of net wealth or for the assessment or re-assessment of net wealth which has escaped assessment, the 1[Assessing Officer] is of the opinion that for the purpose of protecting the interests of the revenue it is necessary to do, he may, with the previous approval of the 2[Chief Commissioner or Commissioner], by order in writing, attach provisionally any property belonging to the assessee in the manner provided in the Second Schedule to the Income-tax Act as made applicable to this Act by section 32.]
3[ Explanation .—For the purposes of this sub-section, the proceedings under sub-section (5) of section 37A shall be deemed to be proceedings for the assessment of any net wealth or for the assessment or reassessment of any net wealth which has escaped assessment.]
(2) Every
(1) With a view to rectifying any mistake apparent from the record
(a) the 2[Assessing Officer] may amend any order of assessment or of refund or any other order passed by him;
3 [(aa) a wealth-tax authority may amend any intimation or deemed intimation under sub-section (1) of section 16.]
4 [ 5 [(aaa)] the Valuation Officer may amend any order passed by him under
section 16A;]
6 [(b) the Joint Director or Joint Commissioner or Director or Commissioner or Joint Commissioner (Appeals) or Commissioner (Appeals) may amend any order passed by him under section 18A;]
7 [***]
8[(c) the Joint Commissioner (Appeals)
(1) If a person wilfully attempts in any manner whatsoever to evade any tax, penalty or interest chargeable or imposable under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Act, be punishable;
(i) in a case where the amount sought to be evaded exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine;
(ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and with fine.
(2) If a person wilfully attempts in any manner whatsoever to evade the payment of any tax, penalty or interest under this Act, he shall, without prejudice to any pen
If a person wilfully fails to furnish in due time the return of his net wealth which he is required to furnish under sub-section (1) of section 14 or by notice given under sub-section (2) of section 14 or under sub-section (1) of section 17, he shall be punishable; (i) in a case where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine;
(ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and with fine:
Provided that a person shall not be proceeded against under this section for failure to furnish in due time the return of net wealth under sub-section (
If a person wilfully fails to produce, or cause to be produced, on or before the date specified in any notice under sub-section (4) of section 16, such accounts, records and documents as are referred to in the notice, he shall be punishable with rigorous imprisonment for a term which may extend to one year or with fine equal to a sum calculated at a rate which shall not be less than four rupees or more than ten rupees for every day during which the default continues, or with both.]
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1. Sections 35c ins. by Act 41 of 1975 sec. 100 (w.e.f. 1-10-1975).
If a person makes a statement in any verification under this Act (other than under section 34AB) or under any rule made thereunder, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable,—
(i) in a case where the amount of tax which would have been evaded if the statement of account had been accepted as true, exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine;
(ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and with fine.]
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1. Sectio
If a person makes a statement in a verification mentioned in section 34AB which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable with imprisonment for a term which may extend to six months or with fine or with both. ]
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1. Sections 35E ins. by Act 41 of 1975 sec. 100 (w.e.f. 1-10-1975).
If a person referred to in section 34ACC fails 3 [***] to intimate to the Board the particulars of conviction of finding referred to in the said section, he shall be punishable with rigorous imprisonment for a term which may extend to two years and shall also be liable to fine:]
4 [Provided that no person shall be punishable under this section if he proves that there was reasonable cause or excuse for the said failure.]
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1. Sections 35EE ins. by Act 41 of 1975 sec. 100 (w.e.f. 1-10-1975).
2. Ins. by Act 67 of 1984, sec. 70 (w.e.f. 1-10-1984).
3. The words “without reasonable cause or excuse” omitted by Act 46 of 1986, sec. 38(i) (w.e.f. 10-9-1986).
&n
If a person contravenes any order referred to in the second proviso to sub-section (1) or sub-section (3A) of section 37A, he shall be punishable with rigorous imprisonment for a term which may extend to two years and with fine.]
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1. Sections 35EE ins. by Act 41 of 1975 sec. 100 (w.e.f. 1-10-1975).
2. Ins. by Act 12 of 1990, sec. 56 (w.e.f. 1-4-1990).
If a person abets or induces in any manner another person to make and deliver an account, statement or declaration relating to any net wealth chargeable to tax which is false and which he either knows to be false or does not believe to be true or to commit an offence under sub-section (1) of section 35A, he shall be punishable,—
(i) in a case where the amount of tax, penalty or interest, which would have been evaded, if the declaration, account or statement had been accepted as true, or which is wilfully attempted to be evaded, exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine;
(ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and wit
If any person convicted of an offence under sub-section (1) of section 35A or section 35B or section 35D or section 35F is again convicted of an offence under any of the aforesaid provisions, he shall be punishable for the second and for every subsequent offence with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine.] ]
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1. Sections 35G ins. by Act 41 of 1975 sec. 100 (w.e.f. 1-10-1975).
2. Ins. by Act 41 of 1975, sec. 100 (w.e.f. 1-10-1975).
(1) Where an offence under this Act has been committed by a Hindu undivided family, the Karta thereof shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render the Karta liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a Hindu undivided family and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any member thereof, such member shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingl
(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attribut
1(1) A person shall not be proceeded against for an offence under this Act except with the previous sanction of the Commissioner or Commissioner (Appeals):
Provided that the Chief Commissioner or, as the case may be, Director-General may issue such instructions or directions to the aforesaid wealth-tax authorities as he may deem fit for institution of proceedings under this sub-section.
(2) Any such offence may, either before or after the institution of proceedings, be compounded by the Chief Commissioner or Director-General.]]
4 [ Explanation .—For the removal of doubts, it is hereby declared that the power of the Board to issue orders, instructions or directions under this Act shall include and shall be deemed always to have included the power to issue instructions or directions (includin
Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), an offence punishable under section 35A or section 35B or section 35D or section 35F shall be deemed to be non-cognizable within the meaning of that Code.]]
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1. Sections 35J ins. by Act 41 of 1975 sec. 100 (w.e.f. 1-10-1975).
2. Ins. by Act 41 of 1975, sec. 100 (w.e.f. 1-10-1975).
(1) A person shall not be proceeded against for an offence under section 35A or section 35D in relation to the assessment for 3 [an assessment year] in respect of which the penalty imposed or imposable on him under clause (iii) of sub-section (1) of section 18 has been reduced or waived by an order under section 18B.
(2) Where any proceeding for prosecution has been taken against any person under this Act, any statement made on account or other document produced by such person before 4 [any Wealth-tax authority (not being an Inspector of Income-tax)] shall not be inadmissible as evidence for the purpose of such proceedings merely on the ground that such statement was made or such account or other document was produced in the belief that the penalty imposable would be reduced or waived under section 18B or that the offence in respect of which such proceeding was taken would be comp
No court inferior to that of a Metropolitan Magistrate or a Magistrate of the first class shall try any offence under this Act.]]
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1. Sections 35K ins. by Act 41 of 1975 sec. 100 (w.e.f. 1-10-1975).
2. Ins. by Act 41 of 1975, sec. 100 (w.e.f. 1-10-1975).
Nothing contained in section 360 of the Code of Criminal Procedure, 1973 (2 of 1974), or in the Probation of Offenders Act, 1958 (20 of 1958), shall apply to a person convicted of an offence under this Act unless that person is under eighteen years of age.] ]
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1. Sections 35M ins. by Act 41 of 1975 sec. 100 (w.e.f. 1-10-1975).
2. Ins. by Act 41 of 1975, sec. 100 (w.e.f. 1-10-1975).
(1) Where during the course of any search made under section 37A, any books of account or other documents, articles or things including money have been found in the possession or control of any person and such books of account or other documents are tendered, or such articles or things including money are relied upon, by the prosecution in evidence against such person or against such person and the person referred to in section 35F for an offence under this Act, the provisions of sub-section (5) of section 37A shall, so far as may be, apply in relation to such books of account or other documents, articles or things including money.
(2) Where
(i) any books of account or other documents taken into custody, from the possession or control of any person by any officer or authority under clause (a) or clause (b) of sub-section (1) of section
(1) In any prosecution for any offence under this Act which requires a culpable mental state on the part of the accused, the court shall presume the existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution.
Explanation .—In this sub-section, “culpable mental state” includes intention, motive or knowledge of a fact, or belief in, or reason to believe, a fact.
(2) For the purposes of this section, a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability.]
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1. Ins. by Act 46 of 1986, sec. 39
Entries in the records or other documents in the custody of a wealth-tax authority shall be admitted in evidence in any proceedings for the prosecution of any person for an offence under this Act, and all such entries may be proved either by the production of the records or other documents in the custody of the Wealth-tax authority containing such entries or by the production of a copy of the entries certified by the Wealth-tax authority having custody of the records or other documents under its signature and stating that it is a true copy of the original entries and that such original entries are contained in the records or other documents in its custody.]
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1.Ins. by Act 3 of 1989, sec. 75 (w.e.f. 1-4-1989). Earlier section 36 was omitted by Act 41 of 1975, sec. 101 (w.e.f. 1-10-1975).
(1)The Central Government may, if it is of opinion (the reasons for such opinion being recorded in writing) that with a view to obtaining the evidence of any person appearing to have been directly or indirectly concerned in or privy to the concealment of particulars of net wealth or to the evasion of payment of tax on net wealth, it is necessary or expedient so to do, tender to such person immunity from prosecution for any offence under this Act or under the Indian Penal Code (45 of 1860) or under any other Central Act for the time being in force and also from the imposition of any penalty under this Act on condition of his making a full and true disclosure of the whole circumstances relating to the concealment of particulars of net wealth or evasion of payment of tax on net wealth.
(2) A tender of immunity made to, and accepted by, the person concerned shall, to the extent to whi
(1) 2[The 3[Assessing Officer], Valuation Officer,] 4[Joint Commissioner (Appeals)], 5 [Commissioner (Appeals),] 6[Chief Commissioner or Commissioner] and the Appellate Tribunal shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit in respect of the following matters, namely:—
(a) discovery and inspection;
(b) enforcing the attendance of any person, including any officer of a banking company and examining him on both;
(c) compelling the production of books of account and other documents; and
(d) issuing commissions.
7[(1A) If the Director-General or Director or 8 [Joint Director] or 8 [Assistant Direc
(1) Where the 2[Director-General or Director] or the 3[Chief Commissioner or Commissioner] or any such 4[Joint Director] or 5[Joint Commissioner] as may be empowered in this behalf by the Board, in consequence of information in his possession, has reason to believe that—
(a) any person to whom a notice under sub-section (4) of section 16 or a summons under section 37 was issued to produce, or cause to be produced, any books of account or other documents, has omitted or failed to produce, or cause to be produced, such books of account or other documents as required by such notice or summons, or
(b) any person to whom a notice or summons as aforesaid has been or might be issued will not, or would not, produce, or cause to be produced, any books of account or other documents which will be useful for, or relevant to, any proceeding under t
(l) Where the 1[Director-General or Director] or the 2[Chief Commissioner or Commissioner], in consequence of information in his possession, has reason to believe that—
(a) any person to whom a notice under sub-section (4) of section 16 or a summons under section 37 was issued to produce, or cause to be produced, any books of account or other documents has omitted or failed to produce, or cause to be produced, such books of account or other documents as required by such notice or summons and the said books of account or other documents have been taken into custody by any officer or authority under any other law for the time being in force, or
(b) any books of account or other documents will be useful for, or relevant to, any proceeding under this Act and any person to whom a notice or summons as aforesaid has been or might be issued wi
(1) The assets retained under sub-section (5A) of section 37A may be dealt with in the following manner, namely:
(i) the amount of the existing liability referred to in clause (iv) of the said sub-section and the amount of the liability determined on completion of the regular assessment or re-assessment for all the assessment years for which the net wealth referred to in clause (i) of that sub-section is assessable to tax (including any penalty levied or interest payable, in connection with such assessment or re-assessment) and in respect of which the assessee is in default or is deemed to be in default may be recovered out of such assets;
(ii) if the assets consist solely of money, or partly of money and partly of other assets, the Assessing Officer may apply such money in the discharge of the liabilities referred to in clause (i) and
1[Where, for the purposes of this Act], it appears necessary for 2[any wealth-tax authority] to obtain any statement or information from any individual, company 3[(including a banking company)], firm, Hindu undivided family or other person, 2[such wealth-tax authority] may serve a notice requiring such individual, company, firm, Hindu undivided family or other person, on or before a date to be therein specified, to furnish such statement or information on the points specified in the notice, and the individual or the principal officer concerned or the manager of the Hindu undivided family, as the case may be, shall, notwithstanding anything in any law to the contrary, be bound to furnish such statement or information to 2(such wealth-tax authority]:
Provided that no legal practitioner shall be bound to furnish any statement or information under this section based on any professiona
(1) For the purposes of this Act, a Valuation Officer or any overseer, surveyor or assessor authorised by him in this behalf may, subject to any rules made in this behalf and at such reasonable times as may be prescribed;
(a) enter any land within the limits of the area assigned to the Valuation Officer, or
(b) enter any land, building or other place belonging to or occupied by any person in connection with whose assessment a reference has been made under section 16A to the Valuation Officer, or (c) inspect any asset in respect of which a reference under section 16A has been made to the Valuation Officer,
and require any person in charge of, or in occupation or possession of, such land, building or other place or asset to afford him the necessary facility to survey or inspect such land, bui
Whenever in respect of any proceeding under this Act any Wealth-tax authority ceases to exercise jurisdiction and is succeeded by another who has and exercises such jurisdiction, the authority so succeeding may continue the proceeding from the stage at which the proceeding was left by his predecessor:
1[Provided that the assessee concerned may demand that before the proceeding is so continued the previous proceeding or any part thereof be reopened or that before any order of assessment is passed against him, he be reheard.]
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1.Ins. by Act 46 of 1964, sec. 37 (w.e.f. 1-4-1965).
application under section 27; the day on which the order complained of was made and the time requisite for obtaining a copy of such order shall be excluded.
(1) A notice or a requisition under this Act may be served on the person therein named either by post or as if it were a summons issued by a court under the Code of Civil Procedure, 1908 (5 of 1908).
(2) Any such notice or requisition may, in the case of a firm or a Hindu undivided family, be addressed to any member of the firm or to the manager or any adult male member of the family, 1[and in the case of a company or any other association of persons] be addressed to the principal officer thereof.
2[(3) After a finding of total partition has been recorded by the 3 [Assessing Officer] under section 20 in respect of any Hindu family, notices under this Act in respect of the net wealth of the Hindu family shall be served on the person who was the last manager of the Hindu family, or, if such person is dead, then on all surviving adults wh
[ Rep. by the Finance Act, 1964 (5 of 1964), sec. 50(b) (w.e.f. 1-4-1964). ]
(1) lf the Central Government is of opinion that it is necessary or expedient in the public interest to publish the name of any assessees and any other particulars relating to any proceedings 2[or prosecutions] under this Act in respect of such assessees, it may cause to be published such names and particulars in such manner as it thinks fit.
3[(2) No publication under this section shall be made in relation to any penalty imposed under this Act until the time for presenting an appeal to the 4[Deputy Commissioner (Appeals)] 5[or, as the case may be, the Commissioner (Appeals)] has expired without an appeal having been presented or the appeal, if presented has been disposed of.]]
6[ Explanation.— In the case of a company, the names of the directors, secretaries and treasurers, or managers, of the company may also be published if in the o
Where a person makes an application to the 2[Chief Commissioner or Commissioner] in the prescribed form for any information relating to any assessee in respect of any assessment made under this Act, the 2[Chief Commissioner or Commissioner] may, if he is satisfied that it is in the public interest so to do, furnish or cause to be furnished the information asked for in respect of that assessment only and his decision in this behalf shall be final and shall not be called in question in any court of law.]
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1. Subs. by Act 5 of 1964, sec. 50(c), for section 42B (w.e.f. 1-4-1964). Earlier section 42B was inserted by Act 28 of 1960, sec. 11 (w.e.f. 1-4-1960).
2. Subs. by Act 4 of 1988, sec. 127, for “Commissioner” (w.e.f. 1-4-1988).
No return of wealth, assessment, notice, summons or other proceeding furnished or made or issued or taken or purported to have been furnished or made or issued or taken in pursuance of any of the provisions of this Act shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such return of wealth, assessment, notice, summons or other proceeding if such return of wealth, assessment, notice, summons or other proceeding is in substance and effect in conformity with or according to the intent and purpose of this Act.]
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1. Ins. by Act 41 of 1975, sec. 104 (w.e.f. 1-10-1975).
Where any books of account or other documents, articles or things including money are found in the possession or control of any person in the course of a search under
section 37A, it may, in any proceeding under this Act, be presumed that—
(i) such books of account or other documents, articles or things including money belong to such person;
(ii) the contents of such books of account or other documents are true; and
(iii) the signature and every other part of such books of account or other documents which purport to be in the handwriting of any particular person or which may reasonably be assumed to have been signed by, or to be in the handwriting of, any particular person, are in that persons handwriting, and in the case of a document stamped,
No suit shall lie in any civil court to set aside or modify 1[any proceeding taken or order made] under this Act, and no prosecution, suit or other legal proceeding shall lie against 2[the Government or] any officer of the Government for anything in good faith done or intended to be done under this Act.
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1. Subs. by Act 26 of 1988, sec. 65, for “any order made” (w.r.e.f. 1-3-1988). Earlier the words ”any order made” were substituted by Act 11 of 1987, sec. 89, for the words “any assessment made” (w.r.e.f. 1-3-1987).
2. Ins. by Act 5 of 1964, sec. 50(d) (w.e.f. 1-4-1964).
(1) Any assessee who is entitled to or required to attend before any Wealth-tax authority or the Appellate Tribunal in connection with any proceeding under this Act, except where he is required under this Act to attend in person, may attend by a person who would be entitled to represent him before any income-tax authority or the Appellate Tribunal under section 288 of the Income-tax Act.
(2) Notwithstanding anything in sub-section (1)—
(i) no person who has been convicted of an offence connected with any wealth-tax proceeding or on whom a penalty has been imposed under this Act other than a penalty imposed on him under clause (i) or clause (ii) of sub-section (1) of section 18 shall be qualified to represent an assessee under sub-section (1) for such time as the 2[Chief Commissioner or Commissioner] may by order determine;
&n
2[The Central Government may enter into an agreement with the Government of any reciprocating country—
(a) for the avoidance or relief of double taxation with respect to wealth-tax payable under this Act and under the corresponding law in force in the reciprocating country, or
(b) for exchange of information for the prevention of evasion or avoidance of wealth-tax chargeable under this Act, or under the corresponding law in force in that country or investigation of cases of such evasion or avoidance, or
(c) for recovery of tax under this Act and under the corresponding law in force in that country,
and may, by notification in the Official Gazette, make such provision as may be necessary for implementing the agreement.).
&nb
Where the net wealth of any assessee includes any foreign wealth and he proves that, in respect of such foreign wealth, he has paid in any country, with which there is no reciprocal arrangement under section 44A for the relief or avoidance of double taxation, a tax in respect of wealth, under the law in force in that country, he shall be entitled to the deduction from the Indian wealth-tax payable by him of a sum calculated on such doubly taxed foreign wealth at the Indian rate of tax or the rate of tax of the said country, whichever is the lower, or at the Indian rate of tax if both the rates are equal.
Explanation .—In this section—
(1) the expression “Indian wealth-tax” means wealth-tax charged in accordance with the provisions of this Act;
(2) the expression “Indian rate of tax” means t
The amount of net wealth computed in accordance with the foregoing provisions of this Act shall be rounded off to the nearest multiple of one hundred rupees and, for this purpose, any part of a rupee consisting of paise shall be ignored and thereafter, if such amount contains a part of one hundred rupees, then, if such part is fifty rupees or more, the amount shall be increased to the next higher amount which is a multiple of one hundred and, if such part is less than fifty rupees, the amount shall be reduced to the next lower amount which is a multiple of one hundred; and the amount so rounded off shall be deemed to be the net wealth of the assessee for the purposes of this Act.]
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1. Ins. by Act 42 of 1970, sec. 65 (w.e.f. 1-4-1971).
The amount of wealth-tax, interest, penalty, fine or any other sum payable, and the amount of refund due, under the provisions of this Act, shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee, and if such part is less than fifty paise, it shall be ignored.]
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1. Ins. by Act 42 of 1970, sec. 65 (w.e.f. 1-4-1971).
1[No tax shall be levied under this Act in respect of the net wealth of—]
2 [***]
(f) any company registered under section 25 of the Companies Act 1956 (1 of 1956);
3[(g) any co-operative society;]
4[(h) any social club;]
5[(i) any political party.
Explanation .—For the purposes of clause (i), “political party” shall have the meaning assigned to it in the Explanation to section 13A of the Income-tax Act;]
6[(j) Mutual Fund specified under clause (23D) of section 10 of the Income-tax Act.]
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1. Subs. by Act 16 o
(1) The Board may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, rules made under this section may provide for—
(a) the manner in which the market value of any asset may be determined;
(b) the form in which returns under this Act shall be made and the manner in which they shall be verified;
(c) the form in which appeals and applications under this Act may be made, and the manner in which they shall be verified;
1[(cc) the circumstances in which, the conditions subject to which and the manner in which, the 2[Deputy Commissioner (Appeals)] 3[or the Commissioner (Appeals)]
If the Central Government considers it necessary or expedient so to do for avoiding any hardship or anomaly or removing any difiiculty that may arise as a result of the application of this Act to the Union territories of Dadra and Nager Haveli, Goa, Daman and Diu, and Pondicherry, or in the case of the Union territory of Pondicherry, for implementing any provision of the Treaty of Cession concluded between France and India on the 28th day of May, 1956, that Government may, by general or special order, make an exemption, reduction in rate or other modification in respect of wealth-tax in favour of any class of assets or in regard to the whole or any part of the net wealth of any assessee or class of assessees:
Provided that the power conferred by this section shall not be exercisable after the 31st day of March, 1967 except for the purpose of rescinding an exemption, reduction or m
(1) If any difficulty arises in giving effect to the provisions of this Act as amended by the Direct Tax Laws (Amendment) Act, 1987, the Central Government may by order, do anything not inconsistent with such provisions for the purpose of removing the difficulty:
Provided that no such order shall be made after the expiration of three years from the 1st day of April, 1988.
(2) Every order made under sub-section (1) shall be laid before each House of Parliament.]
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1.Ins. by Act 4 of 1988, sec. 159 (w.e.f. 1-4-1988).
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