Section 1 – Short Title, Extent and Commencement
This section establishes the formal identity and geographical applicability of the Act. It declares
the Act's name as the "Wealth-tax Act, 1957" and specifies where in India it applies. The commencement
clause provides the date from which the Act comes into effect, setting the legislative framework in
motion.
Section 2 – Definitions
Defines key terms used throughout the Act such as "assets", "net wealth", "valuation date", and
"assessee". These definitions ensure a consistent understanding and application of the Act's
provisions and avoid ambiguity in interpretation across different sections.
testsection
This is a placeholder section used to test layout or formatting in templates. It has no legal effect
or content and is used solely during development or for demonstrations.
test1
Another sample section to test the structure, consistency, and display of formatted content. It
serves as a model for final layouts before actual content is inserted.
Section 3 – Charge of Wealth Tax
Imposes wealth tax on the net wealth of certain taxpayers including individuals, Hindu Undivided
Families (HUFs), and companies. The charge applies annually if net wealth exceeds the specified
threshold as of the "valuation date"—typically the last day of the previous financial year.
Section 4 – Net Wealth to Include Certain Assets
Expands the scope of assets included in net wealth by deeming certain assets held indirectly (like in
the name of a spouse, minor children, or through inadequate transfers) as part of the assessee’s net
wealth. This provision prevents tax avoidance through indirect ownership.
Section 5 – Exemptions in Respect of Certain Assets
Specifies categories of assets that are exempt from wealth tax. This includes, for example, one
residential house, gold bonds, and certain specified investments. Exemptions are based on ownership,
usage, or public interest objectives to encourage investment or savings.
Section 6 – Exclusion of Assets and Debts Outside India
For non-residents, this section excludes assets and debts located outside India from the computation
of net wealth. The provision ensures no double taxation on foreign assets and ties the scope of wealth
tax to the individual's residential status under income tax rules.
Section 7 – Value of Assets, How to be Determined
Prescribes the methodology for valuing different classes of assets like land, buildings, shares, and
jewellery. This may include fair market value, government rates, or valuation rules notified under the
Act. Ensures transparency and consistency in determining tax liability.
Section 8 – Wealth-tax Authorities and Their Jurisdiction
Establishes the hierarchy of authorities responsible for administering wealth tax, including
Wealth-tax Officers, Inspecting Assistant Commissioners, and Commissioners. It defines their roles and
territorial jurisdiction for efficient functioning of the tax system.
Section 9 – Control of Wealth-tax Authorities
Grants powers of supervision and direction to senior tax authorities over their subordinates. This
ensures uniform administration of wealth tax law and consistency in assessment procedures.
Section 10 – Instructions to Subordinate Authorities
Empowers the Central Board of Direct Taxes (CBDT) to issue binding instructions for proper
implementation of the Act. While general directives are allowed, interference in specific case
decisions is prohibited, maintaining judicial fairness.
Section 11 – Jurisdiction of Assessing Officers and Power to Transfer Cases
Details how jurisdiction is assigned to assessing officers—based on geographical area, type of
assessee, or administrative orders. Allows for transfer of cases for administrative efficiency or due
to workload balancing.
Section 11A – Inspector of Wealth-tax
Provides for the appointment and role of Inspectors who assist assessing officers in gathering
information, verifying claims, and conducting field inquiries during assessments.
Section 11AA – Commissioner Competent to Perform Any Function or Functions
Allows designated Commissioners to perform specific functions delegated by the Board. Facilitates
flexibility and proper delegation of responsibilities within the tax department.
Section 11B – Wealth-tax Officer Competent to Perform Any Function or Functions
Authorises Wealth-tax Officers to execute specific functions or responsibilities assigned by senior
authorities, enhancing the efficiency of operations within defined legal boundaries.
Section 12 – Control of Wealth-tax Authorities
Reinforces supervisory and directive powers of higher-ranking officers over their subordinates to
ensure accountability, standardisation, and uniform enforcement of the Act.
Section 12A – Appointment of Valuation Officers
Enables appointment of specialised Valuation Officers to assess the market value of assets. These
officers act independently of assessing officers and ensure objective and accurate asset valuation.
Section 13 – Wealth-tax Authorities to Follow Orders, etc., of the Board
Mandates all wealth-tax officers to adhere to instructions, circulars, and directions issued by the
CBDT. This maintains consistent interpretation and enforcement of tax laws nationwide.
Section 13A – Powers of Director-General or Director, Chief Commissioner or Commissioner and Joint
Commissioner to Make Enquiries
Grants senior tax officials powers to make enquiries and conduct investigations, aiding in detection
of undisclosed wealth and effective enforcement of tax obligations.
Section 8A – Powers of Commissioner Respecting Specified Areas, Cases, Persons, etc.
Authorises Commissioners to handle special classes of cases, designated geographical areas, or
particular types of assessees as notified by the Board. It helps in strategic resource allocation.
Section 8AA – Concurrent Jurisdiction of Inspecting Assistant Commissioner and Wealth-tax Officer
Permits concurrent jurisdiction where both officers can exercise authority over a case. Designed to
ensure collaboration, efficiency, and quicker resolution in complex cases.
Section 8B – Power to Transfer Cases
Empowers transfer of assessment cases between different officers or jurisdictions, either intra-State
or inter-State, to balance workloads or address jurisdictional challenges.
Section 9A – Commissioners of Wealth-tax
Details the supervisory roles of Commissioners, including ensuring compliance with law, issuing
directions, and guiding subordinate officers. They are central to administrative control.
Section 10A – Directors of Inspection
Empowers Directors to supervise inspections and investigations. They coordinate information gathering
across regions and ensure thorough and coordinated wealth assessments.
Section 14 – Return of Wealth
Requires individuals, HUFs, and companies with net wealth above a specified threshold to file annual
returns in the prescribed form and within the due date. This return serves as the basis for wealth-tax
assessment.
Section 15 – Return After Due Date and Amendment of Return
Allows belated and revised filing of returns:
- Return can be filed after due date but within a permissible period.
- Revised return may be submitted to correct errors or omissions.
- Subject to interest and penalties for delay.
Section 14A – Power of Board to Dispense with Furnishing Documents, etc., with Return of Wealth
Allows CBDT to simplify return filing requirements:
- Board may exempt taxpayers from attaching documents with return.
- Reduces administrative burden and enhances ease of compliance.
- Applicable in notified cases or classes of taxpayers.
Section 14B – Filing of Return in Electronic Form
Provides for e-filing of wealth-tax returns:
- Return can be filed electronically using digital signature or verification code.
- Enhances speed, efficiency, and paperless compliance.
- Mandatory for certain classes of assessees as notified.
Section 15 – Return After Due Date and Amendment of Return
Allows belated and revised filing of returns:
- Return can be filed after due date but within a permissible period.
- Revised return may be submitted to correct errors or omissions.
- Subject to interest and penalties for delay.
Section 15A – Return by Whom to be Signed
Specifies the authorized signatory for wealth-tax returns:
- Return must be signed by the individual, Karta, managing director, or authorized person.
- Ensures accountability in filing.
- Varying requirements based on assessee’s legal status.
Section 15B – Self-Assessment
Introduces self-assessment mechanism for taxpayers:
- Assessee must compute tax payable and pay it before filing return.
- Facilitates voluntary compliance and quicker processing.
- Interest and penalties applicable if self-assessment is incorrect.
Section 15C – Provisional Assessment
Permits provisional assessment without prejudice to final assessment:
- Made based on return filed without further inquiry.
- Ensures early recovery of tax dues.
- Does not preclude full assessment under Section 16.
Section 16 – Assessment
Provides for the regular assessment procedure:
- Wealth-tax officer verifies return and computes tax liability.
- Assessment may include scrutiny, hearing, and verification of evidence.
- Ends in issuance of assessment order.
Section 16A – Reference to Valuation Officer
Allows assessing officer to refer asset valuation to a Valuation Officer:
- Ensures accurate assessment of asset value for tax calculation.
- Valuation Officer’s report is binding on the Assessing Officer.
- Applicable when asset valuation appears inaccurate or insufficient.
Section 17 – Wealth Escaping Assessment
Permits reassessment where wealth has escaped assessment:
- Applicable due to income concealment, omission, or misstatement.
- Notice issued within prescribed time limits.
- Protects revenue against evasion.
Section 17A – Time Limit for Completion of Assessment and Reassessment
Prescribes deadlines for completing assessments and reassessments:
- Specifies maximum time for different types of assessments.
- Avoids undue delay and brings finality to proceedings.
- Different time limits for regular and reassessment cases.
Section 17B – Interest for Defaults in Furnishing Return of Net Wealth
Levy of interest for delay in filing return:
- Interest charged for period of default.
- Encourages timely compliance with return filing.
- Non-compliance increases financial liability.
Section 18 – Penalty for Failure to Furnish Returns, to Comply with Notices and Concealment of Assets, etc.
Penal provisions for various defaults:
- Failure to furnish return, comply with notices, or conceal assets invites penalty.
- Amount of penalty depends on nature and gravity of default.
- Acts as deterrent against non-compliance.
Section 18A – Penalty for Failure to Answer Questions, Sign Statements, Furnish Information, Allow Inspection, etc.
Prescribes penalties for obstructing assessment process:
- Applicable when taxpayer fails to assist officers in inquiry.
- Non-cooperation may result in penal consequences.
- Ensures smooth conduct of assessments.
Section 18B – Power to Reduce or Waive Penalty in Certain Cases
Empowers authority to reduce or waive penalties:
- Granted if assessee proves reasonable cause for default.
- Applicable in cases of voluntary compliance or hardship.
- Discretionary relief to promote honest disclosure.
Section 18BA – Power of Commissioner to Grant Immunity from Penalty
Provides immunity from penalty under specific conditions:
- Assessee must make full disclosure and cooperate in inquiry.
- Encourages voluntary compliance and reduces litigation.
- Immunity granted at Commissioner’s discretion.
Section 18C – Procedure When Assessee Claims Identical Question of Law is Pending Before High Court or Supreme Court
Provides relief to the assessee when a similar legal issue is sub judice:
- Assessee can notify the Assessing Officer if the same question of law is pending before High Court or Supreme Court.
- Proceedings may be deferred until the higher court delivers its judgment.
- Ensures uniformity in legal interpretation and avoids repetitive litigation.
Section 19 – Tax of Deceased Person Payable by Legal Representative
Specifies liability of legal representatives for wealth-tax dues of a deceased person:
- Legal representative is responsible for paying wealth-tax from the estate of the deceased.
- Liability is limited to the value of the estate inherited.
- Ensures continuity of tax obligations after death.
Section 19A – Assessment in the Case of Executors
Outlines assessment procedures when executors manage the estate of a deceased person:
- Executor is assessed as if the estate is a separate entity.
- Applies until the estate is fully distributed among legal heirs.
- Executor’s role includes compliance with wealth-tax provisions.
Section 20 – Assessment After Partition of a Hindu Undivided Family
Deals with wealth-tax assessment following the total partition of an HUF:
- Wealth-tax to be assessed as if no partition took place until full enquiry is conducted.
- Liability of members is determined based on individual shares in partitioned assets.
- Assessment order must record the findings of partition.
Section 20A – Assessment After Partial Partition of a Hindu Undivided Family
Specifies treatment of partial partitions under wealth-tax law:
- Partial partitions after 31-12-1978 are not recognized for wealth-tax purposes.
- HUF will continue to be assessed as if no partial partition occurred.
- Prevents tax avoidance through selective asset division.
Section 21 – Assessment When Assets Are Held by Courts of Wards, Administrators-General, etc.
Covers assessment of wealth held by official custodians:
- Taxable wealth is assessed in the name of the custodian (e.g., court of wards, administrator-general).
- Applies to assets held on behalf of beneficiaries.
- Ensures tax liability is not evaded through third-party control.
Section 21A – Assessment in Cases of Diversion of Property or Income Held Under Trust for Charitable or Religious Purposes
Targets trusts involved in improper diversion of property or income:
- Trusts losing eligibility under Section 5(1)(i) are assessed as if the exemption was never granted.
- Applicable from the year such diversion occurs.
- Enables enforcement of charitable trust compliance.
Section 21AA – Assessment When Assets Are Held by Certain Associations of Persons
Describes tax liability for AOPs holding assets:
- Wealth-tax is levied on the AOP as a separate entity.
- Members are not assessed individually for such assets.
- Ensures clear accountability and taxation at the group level.
Section 22 – Assessment of Persons Residing Outside India
Specifies rules for wealth-tax assessment of non-residents:
- Applies to Indian assets of non-resident individuals and entities.
- Enables appointment of agents in India for tax compliance.
- Ensures tax enforcement across borders.
Section 21AA – Assessment When Assets Are Held by Certain Associations of Persons
Describes tax liability for AOPs holding assets:
- Wealth-tax is levied on the AOP as a separate entity.
- Members are not assessed individually for such assets.
- Ensures clear accountability and taxation at the group level.
Section 22A – Definitions
Provides definitions for terms used in Chapter related to Settlement Commission:
- Clarifies key terms like "case", "applicant", and "Settlement Commission".
- Enables consistent interpretation of provisions related to settlement.
- Applicable to sections governing proceedings before the Settlement Commission.
Section 22BA – Jurisdiction and Powers of Settlement Commission
Defines the authority and scope of the Settlement Commission:
- Empowered to settle cases involving undisclosed wealth.
- Jurisdiction over cases referred to it under prescribed conditions.
- Can issue binding orders and directions in such cases.
Section 22BB – Vice-Chairman to Act as Chairman or Discharge His Functions in Certain Circumstances
Provides for continuity in functioning of the Commission:
- Vice-Chairman may act as Chairman when the latter is absent or incapacitated.
- Ensures no disruption in Commission’s operations.
- Empowers Vice-Chairman with necessary authority.
Section 22BC – Power of Chairman to Transfer Cases from One Bench to Another
Gives administrative powers to the Chairman:
- Chairman may transfer any case from one Bench to another Bench of the Commission.
- Transfer may be made for administrative convenience or legal reasons.
- Promotes efficient disposal of settlement cases.
Section 22BD – Decision to Be by Majority
Outlines the decision-making process in the Commission:
- Decisions must be taken by majority of members on the Bench.
- Ensures fair and democratic adjudication process.
- Majority opinion becomes the final order of the Commission.
Section 22DD – Power of Settlement Commission to Order Provisional Attachment to Protect Revenue
Provides safeguards for securing tax dues during settlement proceedings:
- Commission may order attachment of property if revenue is at risk.
- Intended to prevent asset diversion or concealment.
- Attachment remains valid until final order is passed.
Section 22E – Power of Settlement Commission to Reopen Completed Proceedings
Authorizes reopening of concluded assessments for settlement:
- Commission may reopen proceedings if deemed necessary for proper settlement.
- Allows holistic evaluation of wealth for settlement purposes.
- Empowers Commission to override finality of earlier orders.
Section 22F – Powers and Procedure of Settlement Commission
Lays down procedural rules and powers of the Commission:
- Commission has powers similar to a civil court.
- Follows prescribed procedures for inquiry and disposal.
- Ensures transparency and fairness in proceedings.
Section 22G – Inspection, Etc., of Reports
Regulates access to reports and materials in Commission proceedings:
- Commission may allow or restrict inspection of records.
- Protects sensitive information from misuse.
- Supports fair but confidential proceedings.
Section 22H – Powers of Settlement Commission to Grant Immunity from Prosecution
Empowers Commission to provide legal protection to cooperating applicants:
- Immunity may be granted from prosecution and penalties.
- Subject to applicant's full and true disclosure.
- Can be withdrawn if conditions are violated.
Section 22HA – Abatement of the Proceedings Before Settlement Commission
Specifies conditions under which settlement proceedings may abate:
- Proceedings abate if the application is rejected or not allowed to be proceeded with.
- Original assessment/reassessment proceedings revive.
- Taxpayer resumes status before application was filed.
Section 22HAA – Credit for Tax Paid in Case of Abatement of Proceedings
Protects taxpayer's interest in case of abated proceedings:
- Tax already paid under settlement proceedings is given credit.
- Ensures no double taxation or financial loss.
- Facilitates smooth transition back to regular assessment.
Section 22-I – Order of Settlement to Be Conclusive
Makes final settlement order binding and conclusive:
- Order is final and cannot be reopened in any other proceeding.
- Grants legal closure and certainty to taxpayers.
- Protects interests of both tax authority and assessee.
Section 22J – Recovery of Sums Due Under Order of Settlement
Ensures enforceability of Commission's orders:
- Amounts specified in order are recoverable as arrears of tax.
- Provides mechanism for follow-up enforcement.
- Maintains authority and effectiveness of settlement.
Section 22K – Bar on Subsequent Application for Settlement
Restricts repeated applications to the Commission:
- Applicant cannot file another application for the same case once decided.
- Prevents misuse of the settlement mechanism.
- Encourages full and final disclosures in initial attempt.
Section 22L – Proceedings Before the Settlement Commission to Be Judicial Proceedings
Grants legal sanctity to Commission proceedings:
- Proceedings deemed judicial under IPC and CrPC.
- Misconduct during proceedings attracts legal penalties.
- Reinforces seriousness and decorum of proceedings.
Section 22M – Certain Persons Who Have Filed Appeals to the Appellate Tribunal Entitled to Make Applications to the Settlement Commission
Expands eligibility for settlement:
- Allows certain appellants before ITAT to approach Settlement Commission.
- Subject to prescribed conditions and timelines.
- Facilitates amicable resolution of prolonged disputes.
Section 22B – Wealth-tax Settlement Commission
Establishes the authority of the Wealth-tax Settlement Commission:
- Constituted to settle complex wealth-tax cases.
- Comprises a Chairman and members with requisite experience.
- Operates with independent powers and jurisdiction.
Section 22C – Application for Settlement of Cases
Lays down eligibility and process for filing settlement applications:
- Requires full and true disclosure of undisclosed wealth.
- Application must be in the prescribed form with supporting details.
- Triggers the jurisdiction of the Settlement Commission.
Section 22D – Procedure on Receipt of an Application Under Section 22C
Details steps followed after receiving a settlement application:
- Commission examines the validity of the application.
- May call for records and reports from tax authorities.
- Decision made whether to proceed with or reject the application.
Section 23 – Appeal to the Deputy Commissioner (Appeals) from Orders of Assessing Officer
Provides the right to appeal against orders passed by the Assessing Officer:
- Taxpayer can appeal to the Deputy Commissioner (Appeals).
- Covers orders such as assessment, penalty, etc.
- Must be filed within the prescribed time and format.
Section 24 – Appeal to the Appellate Tribunal from Orders of the Deputy Commissioner (Appeals)
Allows a second level of appeal:
- Aggrieved party can appeal to the Appellate Tribunal.
- Applies to orders passed by Deputy Commissioner (Appeals).
- Tribunal may confirm, reduce, enhance or annul the assessment.
Section 25 – Powers of Commissioner to Revise Orders of Subordinate Authorities
Grants supervisory powers to the Commissioner:
- Commissioner may revise any erroneous order passed by subordinate authorities.
- Intended to correct prejudicial errors affecting revenue.
- Such revision must be within a specified time limit.
Section 26 – Appeal to the Appellate Tribunal from Orders of Enhancement by Chief Commissioners or
Commissioners
Right to appeal against enhancement orders:
- Taxpayer can approach the Tribunal if wealth is enhanced by higher authorities.
- Ensures an additional layer of scrutiny for enhanced assessments.
- Tribunal’s decision is binding subject to further appeals.
Section 27 – Reference to High Court
Allows reference to High Court on questions of law:
- Tribunal may refer questions of law to the High Court for opinion.
- Available when there's a dispute on interpretation or legality.
- Decision of the High Court guides final adjudication.
Section 27A – Appeal to High Court
Provides for direct appeal to High Court:
- Appeal lies against Tribunal’s order involving substantial question of law.
- Filed by assessee or the Department.
- High Court's ruling has binding legal force.
Section 28 – Hearing by High Court
Details the procedure followed by High Court in tax matters:
- High Court may admit, dismiss, or remand the appeal.
- Hearing conducted in accordance with procedural law.
- Decision recorded with reasons and legal backing.
Section 29 – Appeal to Supreme Court
Provides the final level of appeal in tax matters:
- Appeal can be made against the judgment of the High Court.
- Must involve a substantial question of law of general importance.
- Subject to leave being granted by the Supreme Court.
Section 29A – Tax to Be Paid Notwithstanding Reference, Etc.
Mandates tax payment even when appeals or references are pending:
- Filing of appeal does not stay the recovery of tax.
- Ensures continuous revenue collection.
- Interest or penalty may apply on delayed payments.
Section 29B – Definition of High Court
Defines the term “High Court” for the purpose of appeals:
- Refers to the High Court having jurisdiction over the Assessing Officer.
- Clarifies territorial and legal jurisdiction in appeal matters.
- Important for determining appropriate forum for legal remedies.
Section 30 – Notice of Demand
Specifies the procedure for issuing a demand notice to the assessee:
- After assessment, a notice of demand is served to the taxpayer.
- The notice specifies the amount of tax payable and due date.
- Ensures formal communication for tax recovery.
Section 31 – When Tax, etc., Payable and When Assessee Deemed in Default
Defines timelines for payment and default status:
- Tax is payable within the time mentioned in the notice of demand.
- Failure to pay within the specified time renders assessee in default.
- Triggers interest, penalty, and recovery proceedings.
Section 32 – Mode of Recovery
Describes methods available to authorities for recovery of tax:
- Includes attachment and sale of movable or immovable property.
- May involve garnishee orders or arrest in certain cases.
- Recovery aligned with procedures under the Income-tax Act.
Section 33 – Liability of Transferees of Properties in Certain Cases
Holds transferees accountable for unpaid tax in specified situations:
- If assets are transferred to avoid tax, transferees may be held liable.
- Applies when transfer lacks adequate consideration.
- Protects revenue interests in asset transfer cases.
Section 34 – Restrictions on Registration of Transfers of Immovable Property in Certain Cases
Imposes limitations on property transfers to secure tax collection:
- Registration authorities may be required to ensure tax compliance.
- Restricts registration of transfers where tax dues are pending.
- Prevents evasion through disposal of property.
Section 34A – Refunds
Provides for refund of excess wealth-tax paid by the assessee:
- If tax paid exceeds the amount properly payable, a refund is due.
- Interest may be payable on the refund amount as per prescribed rules.
- Claims must be made within the time and manner specified under the Act.
Section 34AA – Appearance by Registered Valuers
Allows registered valuers to appear before wealth-tax authorities on behalf of assessees:
- Permits representation in valuation-related matters.
- Valuer must be duly registered under the Act.
- Valuer's role is confined to technical aspects of asset valuation.
Section 34AB – Registration of Valuers
Provides for the procedure and authority responsible for registration of valuers:
- Application must be made in the prescribed form and manner.
- Prescribes qualifications and conditions for registration.
- Registered valuers are listed in an official register.
Section 34AC – Restrictions on Practice as Registered Valuer
Specifies who can act as a registered valuer:
- Only those registered under the Act can represent as valuers.
- Unregistered persons are prohibited from performing valuation duties under the Act.
- Breaches may result in penalties or disqualification.
Section 34ACC – Furnishing of Particulars in Certain Cases
Mandates furnishing of details in specific valuation cases:
- Registered valuers must submit necessary particulars as required by the tax authority.
- Ensures transparency and accountability in valuation.
- Failure to comply may attract penalties or suspension.
Section 34AD – Removal from Register of Names of Valuers and Restoration
Details conditions under which a valuer's name may be removed from the register:
- Non-compliance, misconduct, or incapacity may lead to removal.
- Provision for hearing before removal is enacted.
- Restoration possible upon compliance with conditions.
Section 34AE – Existing Registered Valuers to Apply Afresh
Requires existing valuers to reapply for registration under new rules:
- Old registrations become invalid without fresh application.
- Ensures all valuers meet updated qualification standards.
- Helps maintain a consistent and professional valuation practice.
Section 34B - Transfers to defraud revenue to be void
Any asset transfer with intent to defraud revenue shall be considered void against claims under the
Act.
Section 34C - Provisional attachment to protect revenue in certain cases
Authorities may provisionally attach property to safeguard tax revenue during proceedings.
Section 35 - Rectification of mistakes
Allows for correction of apparent errors in orders within the specified time frame.
Section 35A - Wilful attempt to evade tax, etc.
Prescribes punishment for deliberately attempting to evade wealth-tax liabilities.
Section 35B - Failure to furnish returns of net wealth
Penalty for not submitting wealth returns as required under the Act.
Section 35C - Failure to produce accounts, records, etc
Punishment for failure to produce necessary records or accounts during proceedings.
Section 35D - False statement in verification, etc.
Penalty for making false statements in return verifications or documents.
Section 35E - False statement in verification mentioned in section 34AB
Specific punishment for false verifications by registered valuers under Section 34AB.
Section 35EE - Failure to furnish particulars under section 34ACC
Penalty for not furnishing required details as mandated under Section 34ACC.
Section 35EEE - Contravention under section 37A
Provides punishment for breaching orders related to seizure or search proceedings under Section 37A.
Section 35F - Abetment of false return, etc.
Prescribes penalties for assisting or encouraging the filing of false returns.
Section 35G - Punishment for second and subsequent offences
Harsher penalties for repeated offences under the Act.
Section 35GA - Power of Commissioner to grant immunity from prosecution
Commissioner may grant immunity from prosecution under specified conditions.
Section 35H - Offences by Hindu undivided families
Liability for offences committed by HUFs and their managerial personnel.
Section 35HA - Offences by companies
Holds companies and responsible officers accountable for violations.
Section 35-I - Sanction and compounding of offences
Prior approval needed for prosecution and option for compounding offences.
Section 35J - Certain offences to be non-cognizable
Specifies that certain offences under the Act are non-cognizable.
Section 35K - Bar on prosecution and inadmissibility of evidence
Prohibits prosecution and restricts use of evidence under certain conditions.
Section 35L - Jurisdiction of courts
Defines which courts have jurisdiction over proceedings under the Act.
Section 35M - Application of CrPC and Probation of Offenders Act
Restricts application of probationary reliefs for tax-related offences.
Section 35N - Presumption as to books of account, etc.
Allows presumption of correctness for seized records unless proven otherwise.
Section 35-O - Presumption as to culpable mental state
Legal presumption of intent unless rebutted by the accused.
Section 36 - Proof of entries in records or documents
Specifies evidentiary value of documents and records in tax proceedings.
Section 36A - Power to tender immunity from prosecution
Authorities can offer immunity under certain conditions during proceedings.
Section 37 - Power to take evidence on oath, etc.
Wealth-tax authorities may record statements under oath during inquiries.
Section 37A - Power of search and seizure
Provides for search and seizure of property or documents to enforce the Act.
Section 37B - Power to requisition books of account, etc.
Permits requisitioning of documents from persons in possession.
Section 37C - Application of retained assets
Details the usage and application of assets retained by authorities.
Section 38 - Information, returns and statements
Mandates furnishing of information, returns, or statements by taxpayers.
Section 38A - Powers of Valuation Officer, etc.
Grants powers to Valuation Officers similar to those of a court.
Section 39 - Effect of transfer of authorities on pending proceedings
Clarifies continuity of legal proceedings despite transfer of jurisdiction.
Section 40 - Computation of periods of limitation
Defines how limitation periods are computed under various circumstances.
Section 41 - Service of notice
Specifies the legal manner of serving notices to taxpayers.
Section 42 - Notice deemed to be valid in certain circumstances
Outlines conditions under which notices will be considered valid.
Section 42A - Publication of information respecting assessees
Allows publication of names of defaulters and related details.
Section 42B - Disclosure of information respecting assessees
Prescribes conditions for lawful disclosure of taxpayer information.
Section 42C - Return of wealth not to be invalid on certain grounds
Ensures returns aren't invalidated for minor procedural defects.
Section 42D - Presumption as to assets, books of account, etc.
Provides legal presumptions regarding assets or documents found during proceedings.
Section 43 - Bar of jurisdiction
Bars civil courts from interfering in wealth-tax matters.
Section 44 - Appearance by authorised representatives
Permits representation before authorities by authorised professionals.
Section 44B - Countries with which no agreement exists
Provides for application of provisions where no tax treaties are in place.
Section 44C - Rounding off of net wealth
Mandates rounding off net wealth to the nearest hundred rupees.
Section 44D - Rounding off of tax, etc.
Specifies rounding rules for tax amounts.
Section 45 - Act not to apply in certain cases
Lists exemptions where the Wealth-tax Act does not apply.
Section 46 - Power to make rules
Central Government may frame rules to implement the provisions of the Act.
Section 46A - Power to make exemption in relation to Union Territories
Authorizes exemptions specific to certain Union Territories.
Section 47 - Power to remove difficulties
Empowers the Central Government to resolve implementation difficulties.
Section 44A - Agreement for avoidance or relief of double taxation
Allows the Government to enter into agreements to prevent double taxation of wealth.
Schedule I - Rates of Wealth-Tax
This Schedule specifies the rates at which wealth-tax shall be charged for every assessment year
commencing on or after April 1, 1993:
- Wealth up to â‚ą30 lakhs: Nil
- Wealth exceeding â‚ą30 lakhs: 1% of the amount exceeding â‚ą30 lakhs
The rates are applicable to individuals, Hindu undivided families (HUFs), and companies as defined
under the Act. These rates are subject to amendments through Finance Acts enacted annually.
Schedule III - Rules for Determining the Value of Assets
This Schedule lays down specific rules for calculating the value of different categories of assets
for wealth-tax purposes. The rules ensure uniformity and transparency in asset valuation:
- Part A: General principles of valuation applicable to all assets unless otherwise
specified.
- Part B: Valuation of immovable property, including buildings and land.
- Part C: Valuation of business assets based on book value or prescribed formulae.
- Part D: Valuation of jewellery, including gold, silver, precious stones, and
ornaments.
- Part E: Valuation of life interest and interest in partnership firms or
association of persons.
- Part F: Valuation of assets located outside India, when applicable.
- Part G: Rules relating to valuation reports and acceptance by Assessing Officers.
The rules are designed to reflect the fair market value of assets on the valuation date and are
mandatory for computation of net wealth under the Act.
Appendix - Certain Remaining Provisions of Allied Acts Referred to in Wealth-Tax Act
This Appendix includes references to select provisions from other allied tax legislations that are
applicable under the Wealth-tax Act. These help ensure consistency and effective administration:
- Integration: Provisions from the Income-tax Act and related statutes are
incorporated to streamline assessments, penalties, and procedures.
- Procedural Parity: Aligns procedural and enforcement mechanisms between the
Wealth-tax Act and other direct tax laws.
- Legal Consistency: Provides a legal foundation for extending specific powers,
such as prosecution, appeals, and recovery, under allied Acts to the Wealth-tax regime.
This integration ensures that legal and procedural safeguards available under other tax statutes are
also applicable to wealth-tax matters.
ANNEX
The ANNEX section was omitted by the Finance Act, 1992, with effect from 1st April 1993. It no longer
forms part of the Wealth-tax Act framework.
- Omission Date: 1st April 1993
- Omitting Authority: Finance Act, 1992
- Current Status: Not applicable or enforceable under the present Wealth-tax law
This omission reflects the legislative intent to streamline the provisions of the Act and remove
redundant references.
.png)
