Join our Law Notes WhatsApp Group and stay updated with Legal and Judicial Updates

Wealth Tax Act, 1957

From Lawnotes.in
Jump to:navigation, search

The Wealth Tax Act was enacted in 1957 and was made applicable effective April 1, 1957. It is chargeable on net wealth only after the allowed exemptions and any debts are deducted.

Introduction

The Wealth Tax is a part of the Finance Act and a branch of the Income Tax. It was dealt by the same hierarchy of officers of the Income Tax Department. The Wealth Tax Rules, 1957 were framed for the implementation of the Act.

Structure of the Act

  • This Act had 47 sections under 13 chapters.
  • Section 2(c) defines Assessee
    • Persons on whom any proceedings of the act have been taken
    • Persons deemed to be Assessee
    • Persons default under this Act
  • Rate of Wealth Tax is 1% after Rs. 15 Lakhs of net wealth
  • Firms, Banking Company, Insurance Company, Transportation Company engaged in transportation of passengers or goods by ships, charitable company, a company incorporated outside India, Co-operative Societies, Social clubs, political parties, mutual funds etc. are exempted from paying wealth tax.
  • Section 2(ea): Exempted Assets: House meant exclusively for residential purpose, jeweller, buullion and other precious articles used as stock-in-trade, motor cars, urban land, gold deposit bonds etc.
  • Section 2(m): Net Wealth
  • Section 2(q): Valuation Date

Chapter II

  • Section 3: Charge of wealth tax
  • Section 4: Net wealth to include certain assets
  • Section 5: Exemptions in respect, of certain assets
  • Section 6: Exclusion of assets and debts outside India
  • Section 7: Value of assets how to be determined (Rules for determining value of asset)
  • Section 8:
  • Section 9:
  • Section 10:
  • Section 11:
  • Section 12:
  • Section 13:
  • Section 14: Return of Wealth
  • Section 15:
  • Section 16: Best Judgement Assessment
  • Section 17: Wealth Escaping Assessment
  • Section 18:
  • Section 19: Assessment in case of a deceased person
  • Section 20: Assessment after partition of a Hindu Undivided Family
  • Section 20A: Assessment after partial-partition of a Hindu Undivided Family
  • Section 21:
  • Section 22:
  • Section 23:
  • Section 24:
  • Section 25:
  • Section 26:
  • Section 27:
  • Section 28:
  • Section 29:
  • Section 30:
  • Section 31:
  • Section 32:
  • Section 33:
  • Section 34:
  • Section 35: Rectification of mistakes
  • Section 37:
  • Section 38:
  • Section 39:
  • Section 40:
  • Section 41:
  • Section 42:
  • Section 43:
  • Section 44:
  • Section 45:
  • Section 46: Power to make rules

Related Cases / Recent Cases / Case Laws