THE WEALTH-TAX RULES, 1957
SRO 3384, DATED 18-10-1957
In exercise of the powers conferred by section 46 of the Wealth-tax Act, 1957 (27 of 1957), the Central Board of Revenue hereby makes the following rules, namely :—
Short Title and Commencement
- (1) These rules may be called the Wealth-tax Rules, 1957.
(2) They shall be deemed to have come into force on the 1st day of April, 1957.
Definitions
- 1A. In these rules, unless the context otherwise requires,—
- (a) “Act” means the Wealth-tax Act, 1957 (27 of 1957);
- (b) “accounting year”, in relation to a company, means a period in respect of which any profit and loss account of the company laid before it in annual general meeting is made up;
- (ba) “authorised bank” means any bank as may be appointed by the Reserve Bank of India as its agent under the provisions of sub-section (1) of section 45 of the Reserve Bank of India Act, 1934 (2 of 1934);
- (c) “equity share” means any share in the share capital of a company other than a preference share;
- (d) “Form” means a form appended to these rules;
- (e) “gold” means gold, including its alloy, whether virgin, melted, remelted, wrought or unwrought, in any shape or form of a purity of not less than nine carats and includes any gold coin (whether legal tender or not), any gold ornament and other articles of gold;
- (f) “gold ornament” means any article in a finished form, meant for personal adornment or for the adornment of any idol, deity or any other object of religious worship, made of, or manufactured from, gold, whether or not set with stones or gems, real or artificial or with pearls, real, cultured or imitation or with all or any of them and includes parts, pendants or broken pieces of gold ornaments;
- (g) “investment company” means a company whose gross total income consists mainly of income which is chargeable to income-tax under the heads “Interest on securities”, “Income from house property”, “Capital gains” and “Income from other sources”.
- Explanation.—In this clause, the expression “gross total income” means the total income computed in accordance with the provisions of the Income-tax Act, 1961 before making any deduction under Chapter VIA of that Act ;
- (h) “managing agency company” means a company the entire income of which or any part thereof is derived by way of managing agency;
- (i) “preference share” has the meaning assigned to it in section 85 of the Companies Act, 1956 (1 of 1956);
- (j) “recognised stock exchange” has the meaning assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
- (k) “section” means a section of the Act;
- (l) “unquoted share” means an equity share or a preference share of a company, other than any such share the value of which is regularly quoted at any recognized stock exchange;
- (m) all other words and expressions used but not defined in these rules and defined in the Act, shall have the meanings respectively assigned to them in the act.
- Prescribed authority for the purposes of section 5(1)(xxxiv).
- 1AA. For the purposes of clause (xxxiv) of sub-section (1) of section 5,—
- (i) the Chief Controller of Imports and Exports, Ministry of Commerce, Government of India, shall be the “prescribed authority” for specifying the percentage of total production to be exported by a company for the purposes of the said clause and for certifying that the company has undertaken the export of such percentage of its total production as has been so specified ;
- (ii) the Controller of Capital Issues, Department of Economic Affairs, Ministry of Finance, Government of India, shall be the “prescribed authority” for certifying that an issue of equity share capital has been made by a company after the 31st day of March, 1976, for the purposes of expansion or diversification of its industrial undertaking.
- Valuation of life interest.
1B. [Omitted by the Wealth-tax (Second. Amendment) Rules, 1989, w.e.f.1-4-1989.]
Valuation of house.
1BB. [Omitted by the Wealth-tax (Second Amendment) Rules, 1989, w.e.f. 1-4-1989.]
Market value of unquoted preference shares.
1C. [Omitted by the Wealth-tax (Second.Amendment) Rules, 1989, w.e.f.1-4-1989.]
Market value of unquoted equity shares of companies other than investment companies and managing agency companies.
1D. [Omitted by the Wealth-tax (Second Amendment) Rules, 1989, w.e.f. 1-4-1989.]
Valuation of interest in partnership or association of persons.
2. [Omitted by the Wealth-tax (Second Amendment) Rules, 1989, w.e.f. 1-4-1989.]
Determination of the net value of assets of business as a whole.
2A. [Omitted by the Wealth-tax (Second Amendment) Rules, 1989, w.e.f. 1-4-1989.]
Adjustments in the value of an asset disclosed in the balance sheet.
2B. [Omitted by the Wealth-tax (Second Amendment) Rules, 1989, w.e.f. 1-4-1989.]
Adjustments in the value of an asset not disclosed in the balance sheet.
2C. [Omitted by the Wealth-tax (Second Amendment) Rules, 1989, w.e.f. 1-4-1989.]
Value of certain assets not to be taken into account.
2D. [Omitted by the Wealth-tax (Second Amendment) Rules, 1989, w.e.f. 1-4-1989.]
Value of certain liabilities not to be taken.
2E. [Omitted by the Wealth-tax (Second Amendment) Rules, 1989, w.e.f. 1-4-1989.]
Liabilities not disclosed in the balance sheet.
2F. [Omitted by the Wealth-tax (Second Amendment) Rules, 1989, w.e.f. 1-4-1989.]
Special provision for exclusion of certain assets and liabilities shown in the balance sheet.
2G. [Omitted by the Wealth-tax (Second Amendment) Rules, 1989, w.e.f. 1-4-1989.]
Valuation of assets forming part of industrial undertaking.
2H. [Omitted by the Wealth-tax (Second Amendment) Rules, 1989, w.e.f. 1-4-1989.]
Valuation of interest in assets of industrial undertaking belonging to a firm or association of persons.
2-I. [Omitted by the Wealth-tax (Second Amendment) Rules, 1989, w.e.f. 1-4-1989.]
3.Form of return of net wealth
(1) The return of net wealth referred to in section 14 shall—
(a) in respect of assessment year 2013-14 and earlier assessment years in the case of individuals, Hindu undivided families and companies, be in Form BA and shall be verified in the manner specified therein.
(b) in respect of the assessment year 2014-15 and any other subsequent assessment year in the case of individuals, Hindu undivided families and companies be in Form BB and shall be verified in the manner specified therein.
(2) Subject to the provisions of sub-rule (3), for the assessment year 2014-15 and any other subsequent assessment year, the return of net wealth referred to in sub-rule (1) shall be furnished electronically under digital signature.
(3) In case of individual or Hindu undivided family to whom the provisions of section 44AB of the Income-tax Act, 1961(43 of 1961) are not applicable, the return of net wealth referred to in sub-rule (1) may be furnished for assessment year 2014-15 in a paper form.
(4) The return of net wealth required to be furnished in Form BB shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax and interest paid, or any document or copy of any account or form of report of valuation by registered valuer required to be attached with the return of net wealth under any provisions of the Act.
(5) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing the returns in the manners specified in sub rule (2).”
Notice of Demand
4. Every notice of demand under section 30 shall be in Form C :
Provided that a notice of demand relating to payment of wealth-tax provisionally assessed under section 15C shall be in Form D.
Form of application for settlement of case and intimation to the Assessing Officer.
4A. (1) An application for settlement of a case under sub-section (1) of section 22C shall be made in quintuplicate in Form DA and shall be verified in the manner indicated therein.
(2) The application referred to in sub-rule (1), the verification appended thereto, the Annexure to the said application and the statements and documents accompanying the Annexure shall be signed by the person specified in section 15A.
(3) Every application in connection with the settlement of a case shall be accompanied by a fee of five hundred rupees.
(4) The assessee shall, on the date on which he makes the application to the Settlement Commission, intimate in Form DAA to the Assessing Officer of having made such application to the Commission.
Disclosure of information in the application for settlement of cases
4AA. (1) The Settlement Commission shall, while calling for a report from the Commissioner under sub-section (2B) of section 22D, forward a copy of the application in Form DA (other than the Annexure and the statements and other documents accompanying such Annexure) along with a copy of the order under sub-section (1) of section 22D or, as the case may be, an intimation in respect of an application deemed to have been allowed to be proceeded with under sub-section (2A) of section 22D.
(2) Where an application has not been declared invalid under sub-section (2C) of section 22D or an application has been allowed to be further proceeded with under sub-section (2D) of section 22D, the information contained in the Annexure to the application in Form DA and in the statements and other documents accompanying such Annexure shall be sent to the Commissioner.
Fee for furnishing copy of report.
4B. (1) The following scale of fees shall be levied by the Settlement Commission for furnishing under section 22G a copy of any report or part of any report made by any wealth tax authority to the Settlement Commission :—
For the first two hundred words or less 80 paise; For every additional hundred words or fraction thereof 40 paise.
(2) The fee referred to in sub-rule (1) shall be recovered in advance in cash.
Avoidance of repetitive appeals.
4C. (1) The declaration referred to in sub-section(1) of section 18C shall be in Form DB and shall be verified in the manner indicated therein.
(2) The declaration and the verification referred to in sub-rule (1) shall be signed by the person specified in section 15A.
(3) The declaration referred to in sub-rule (1) shall,—
(a) in a case where it is furnished to the Deputy Commissioner (Appeals) or the Commissioner (Appeals), be in duplicate, and
(b) in a case where it is furnished to the Appellate Tribunal, be in triplicate.
Appeal to the Commissioner (Appeals)
- (1) An appeal under section 23A to the Commissioner (Appeals), shall be in Form E and shall be verified in the manner provided therein.
(2) In any appeal preferred in Form E, the memorandum of appeal, the grounds of appeal and the verification shall be signed by the person who is authorised to sign the return of net wealth as provided in section.15A of the Wealth-tax Act, 1957.
Production of additional evidence before the Deputy Commissioner (Appeals) and Commissioner (Appeals).
5A. (1) The appellant shall not be entitled to produce before the Deputy Commissioner (Appeals), or, as the case may be, the Commissioner (Appeals) any evidence, whether oral or documentary, other than the evidence produced by him during the course of proceedings before the Assessing Officer, except in the following circumstances, namely :—
(a) where the Assessing Officer has refused to admit evidence which ought to have been admitted; or
(b) where the appellant was prevented by sufficient cause from producing the evidence which he was called upon to produce by the Assessing Officer; or
(c) where the appellant was prevented by sufficient cause from producing before the Assessing Officer any evidence which is relevant to any ground of appeal; or
(d) where the Assessing Officer has made the order appealed against without giving sufficient opportunity to the appellant to adduce evidence relevant to any ground of appeal.
(2) No evidence shall be admitted under sub-rule (1) unless the Deputy Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals) records in writing the reasons for its admission.
(3) The Deputy Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals) shall not take into account any evidence produced under sub-rule (1) unless the Assessing Officer has been allowed a reasonable opportunity—
(a) to examine the evidence or document or to cross-examine the witness produced by the appellant, or
(b) to produce any evidence or document or any witness in rebuttal of the additional evidence produced by the appellant.
(4) Nothing contained in this rule shall affect the power of the Deputy Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals) to direct the production of any document, or the examination of any witness, to enable him to dispose of the appeal, or for any other substantial cause including the enhancement of the assessment or penalty (whether on his own motion or on the request of the Assessing Officer) under sub-section (5) of section 23 or the imposition of penalty under section 18.