Section 5 - Exemptions in respect of certain assets - Wealth Tax Act, 1957

Exemptions in respect of certain assets. 1 [5. 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 that Act;] (ii) the interest of the assessee in the coparcenary property of any Hindu undivided family of which he is a member ; (iii) 5 [ any one building in the occupation of a Ruler, being a building which immediately before the commencement of the Constitution (Twenty-sixth Amendment) Act, 1971, was his official residence by virtue of a declaration by the Central Government] under paragraph 13 of the Merged States (Taxation Concessions) Order, 1949, or paragraph 15 of the Part B States (Taxation Concessions) Order, 1950; (iv) to 6 [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] (xiii) 7 [ (iv) ] 8 jewellery in the possession of any Ruler, not being his personal property, which has been recognised before the commencement of this Act, by the Central Government as his heirloom or, where no such recognition exists, which the Board may, subject to any rules that may be made by the Central Government in this behalf, recognise as his heirloom at the time of his first assessment to wealth-tax under this Act: 9 [ Provided that in the case of jewellery recognised by the Central Government as aforesaid, such recognition shall be subject to the following conditions, namely : (i) that the jewellery shall be permanently kept in India and shall not be removed outside India except for a purpose and period approved by the Board ; (ii) that reasonable steps shall be taken for keeping the jewellery substantially in its original shape ; (iii) that reasonable facilities shall be allowed to any officer of Government authorised by the Board in this behalf to examine the jewellery as and when necessary ; and (iv) that if any of the conditions hereinbefore specified is not being duly fulfilled, the Board may, for reasons to be recorded in writing, withdraw the recognition retrospectively with effect from the date of commencement of clause (b) of section 5 of the Rulers of Indian States (Abolition of Privileges) Act, 1972, and in such a case, wealth-tax shall become payable by the Ruler for all the assessment years after such commencement for which the jewellery was exempted on account of the recognition. Explanation . For the purposes of clause (iv) of the foregoing proviso, the fair market value of any jewellery on the date of the withdrawal of the recognition in respect thereof shall be deemed to be the fair market value of such jewellery on each successive valuation date relevant for the assessment years referred to in the said proviso: Provided further that the aggregate amount of wealth-tax payable in respect of any jewellery under clause (iv) of the foregoing proviso for all the assessment years referred to therein shall not in any case exceed fifty per cent of its fair market value on the valuation date relevant for the assessment year in which recognition was withdrawn;] (xv) to 10 [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] (xxxii) 11 [ 12 [(v)] 13 in the case of an assessee, being a person of Indian origin 14 [or a citizen of India (hereafter in this clause referred to as such person)] who was ordinarily residing in a foreign country and who, on leaving such country, has returned to India with the intention of permanently residing therein, moneys and the value of assets brought by him into India and the value of the assets acquired by him out of such moneys 15 [within one year immediately preceding the date of his return and at any time thereafter] : Provided that this exemption shall apply only for a period of seven successive assessment years commencing with the assessment year next following the date on which such person returned to India. Explanation 16 [1]. A person shall be deemed to be of Indian origin if he, or either of his parents or any of his grand-parents, was born in undivided India.] 17 [ Explanation 2 .For the removal of doubts, it is hereby declared that moneys standing to the credit of such person in a Non-resident (External) Account in any bank in India in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made thereunder, on the date of his return to India, shall be deemed to be moneys brought by him into India on that date;] 18 [(vi) 19 one house or part of a house or a plot of land belonging to an individual or a Hindu undivided family: Provided that wealth-tax shall not be payable by an assessee in respect of an asset being a plot of land comprising an area of five hundred square metres or less.] (xxxiv) 20 [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] (1A) 21 [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] (2) 22 [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] (3) 23 [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] (4) 24 [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] ------------------------------ Notes:- 1. Letter [F. No. 320/157/75-WT], dated 19-11-1975. For details, see Referencer. 2. Words (1) Subject to the provisions of sub-section (1A) omitted by the Finance Act, 1992, w.e.f. 1-4-1993. Before the expression was amended vide the Finance Act, 1970, w.e.f. 1-4-1971. 3. Restored to its original provision by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Proviso was earlier substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date. It was originally inserted by the Finance Act, 1985, w.e.f. 1-4-1986. 4. Words "clause (22) or clause (22A) or" omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999. 5. Substituted vide the Rulers of Indian States (Abolition of Privileges) Act, 1972, with retrospective effect from 28-12-1971., before it was read as;-"any one building in the occupation of a Ruler declared by the Central Government as his official residence" 6. Prior to omission, clauses ( iv ) to ( xiii ), as amended by the Finance Act, 1964, w.e.f. 1-4-1964, the Finance Act, 1969, w.e.f. 1-4-1970, the Taxation Laws (Amendment) Act, 1970, w.r.e.f. 1-4-1965, the Finance Act, 1970, w.e.f. 1-4-1971, the Finance (No. 2) Act, 1971, w.e.f. 1-4-1972/w.r.e.f. 1-4-1963, the Finance Act, 1974, w.e.f. 1-4-1975, the Finance Act, 1975, w.e.f. 1-4-1975/w.e.f. 1-4-1976, the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976, the Finance Act, 1976, w.r.e.f. 1-4-1975/w.e.f. 1-4-1977, the Finance (No. 2) Act, 1980, w.e.f. 1-4-1981, the Finance Act, 1982, w.e.f. 1-4-1983, the Finance Act, 1983, w.e.f. 1-4-1984, the Finance Act, 1984, w.e.f. 1-4-1985 and the Finance Act, 1985, w.e.f. 1-4-1986, read as under : '( iv ) one house or part of a house belonging to the assessee ; [* * *] ( iva ) [* * *] ( ivb ) [* * *] ( ivc ) one or more dwelling units (each such dwelling unit having a plinth area not exceeding eighty square metres) and the land appurtenant thereto, belonging to the assessee, where the construction of such dwelling unit or units is begun on or after the 1st day of April, 1976 : Provided that this exemption shall apply in respect of any dwelling unit or units and the land appurtenant thereto only for a period of five successive assessment years next following the date on which the construction of such dwelling unit or units is completed. Explanation . For the purposes of this clause, ( a ) "dwelling unit" means a unit of accommodation used solely for the purpose of residence ; ( b ) "land appurtenant", in relation to any dwelling unit or units comprising a building, means, ( i ) in an area where there is any law in force providing for the minimum extent of land contiguous to the land occupied by any building to be kept as open space for the enjoyment of such building, the minimum extent of land contiguous to the land occupied by the building comprising such dwelling unit or units required to be kept as open space under such law ; ( ii ) in any other area, an extent of land not exceeding one-third of the plinth area of the building comprising the dwelling unit or units at the ground level contiguous to the land occupied by such building ; ( v ) the rights under any patent or copyright belonging to the assessee : Provided that they are held by him in his own right as the inventor or author of such patent or copyright, as the case may be, and have not been assigned to, or acquired by, him under a contract or by way of inheritance or otherwise ; ( vi ) the right or interest of the assessee in any policy of insurance before the moneys covered by the policies become due and payable to the assessee : Provided that in the case of a policy of insurance the premium or other payment whereon is payable during a period of less than ten years, the amount that shall not be included in the net wealth of the assessee under this clause shall be a sum that bears to the value of the right or interest of the assessee in the policy the same proportion as the number of years during which the premium or other payment on the policy is payable bears to ten ; ( via ) the right of the assessee to receive any annuity payable by the Central Government under the provisions of section 280D of the Income-tax Act ; ( vii ) the right of the assessee to receive a pension or other life annuity in respect of past services under an employer ; ( viii ) furniture, household utensils, wearing apparel, provisions and other articles inten-ded for the personal or household use of the assessee but not including jewellery : Provided that the furniture, utensils or other articles are neither made wholly or partly of, nor contain (whether by way of embedding, covering or otherwise), gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals : Provided further that nothing in this clause shall operate to exclude from the net wealth of the assessee any conveyance or conveyances to the extent the value or the aggregate value thereof exceeds the sum of seventy-five thousand rupees. Explanation 1. For the purposes of this clause and clause ( xiii ), "jewellery" includes ( a ) ornaments made of gold, silver, platinum or any other precious metals or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stone, and whether or not worked or sewn into any wearing apparel ; ( b ) precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel. Explanation 2. For the purposes of this clause, "conveyance" means any motor car or other mechanically propelled vehicle, aircraft or boat; ( viiia ) [* * *] ( viiib ) [* * *] ( ix ) the tools, implements and equipments used by the assessee for the cultivation, conservation, improvement or maintenance of agricultural land, or for the raising or harvesting of any agricultural or horticultural produce on such land. Explanation. For the purposes of this clause, tools, implements and equipment do not include any plant or machinery used in any tea or other plantation in connection with the processing of any agricultural produce or in the manufacture of any article from such produce ; ( x ) the tools and instruments necessary to enable the assessee to carry on his profession or vocation, subject to a maximum of fifty thousand rupees in value ; ( xa ) in the case of an assessee who is carrying on a profession (being legal, medical, engineering or architectural profession or the profession of accountancy or such other profession as is notified by the Central Government in this behalf) and who regularly maintains books of account on the cash system of accounting, the amount of any fee due to him in respect of the services rendered by him in such professional capacity; ( xi ) instruments and other apparatus used by the assessee for purposes of scientific research ; ( xii ) any works of art, archaeological, scientific or art collections, books or manuscripts belonging to the assessee and not intended for sale ; ( xiii ) any drawings, paintings, photographs, prints and any other heirloom not falling within clause ( xii ) and not intended for sale, but not including jewellery : 7. Renumbered for "(xiv)" by the Finance Act, 1992, w.e.f. 1-4-1993. 8. See Circular No. 3D(WT) of 1960, dated 1-4-1960. For details, see Referencer. 9. Inserted by the Rulers of Indian States (Abolition of Privileges) Act, 1972, w.e.f. 9-9-1972. 10. Prior to omission, clauses ( xv ) to ( xxxii ), as amended by the Finance Act, 1958, w.r.e.f. 1-4-1957, the Taxation Laws (Amendment) Act, 1962, w.e.f. 13-12-1962, the Finance (No. 2) Act, 1962, w.e.f. 1-4-1962, the Finance Act, 1963, w.e.f. 1-4-1963, the Wealth-tax (Amendment) Act, 1964, w.e.f. 1-4-1965, the Finance Act, 1965, w.e.f. 1-4-1965, the Finance (No. 2) Act, 1965, w.e.f. 1-4-1965, the Taxation Laws (Amendment Miscellaneous Provisions) Act, 1965, w.e.f. 4-12-1965, the Finance Act, 1968, w.e.f. 1-4-1969, the Finance Act, 1970, w.e.f. 1-4-1971, the Finance (No. 2) Act, 1971, w.e.f. 1-4-1972, the Finance Act, 1972, w.e.f. 1-4-1973/w.r.e.f. 1-4-1957, the Finance Act, 1975, w.e.f. 1-4-1975, the Labour Provident Fund Laws (Amendment) Act, 1976, w.e.f. 1-8-1976, the Finance Act, 1976, w.e.f. 1-4-1976/1-4-1977, the Finance (No. 2) Act, 1980, w.e.f. 1-4-1981, the Special Bearer Bonds (Immunities and Exemptions) Act, 1981, w.e.f. 12-1-1981, the Finance Act, 1982, w.e.f. 1-4-1983, the Finance Act, 1983, w.e.f. 1-4-1983/1-4-1984, the Finance Act, 1984, w.e.f. 1-4-1985, the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985, the Finance Act, 1986, w.e.f. 1-4-1986, the Finance Act, 1987, w.e.f. 1-4-1988, the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, the Finance Act, 1988, w.e.f. 1-4-1988/1-4-1989, the Finance Act, 1989, w.r.e.f. 1-4-1988, the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989/1-4-1990, the Finance Act, 1990, w.e.f. 1-4-1991 and the Finance (No. 2) Act, 1991, w.r.e.f. 1-4-1984/w.e.f. 1-10-1991, read as under : '( xv ) deposits under any scheme framed by the Central Government and notified* by it in this behalf in the Official Gazette, to the extent to which the amounts of such deposits do not exceed the maximum amount permitted to be deposited therein ; ( xvi ) ten-year treasury savings deposit certificates, fifteen-year annuity certificates, deposits in post office savings banks, post office cash certificates, post office national savings certificates, post office national plan certificates and twelve-year national plan savings certificates, ten-year defence deposit certificates and twelve-year national defence certificates, to the extent to which the amount of such certificates or deposits do not exceed in each case the maximum amount permitted to be invested or deposited therein ; ( xvia ) 6 per cent Gold Bonds, 1977, 7 per cent Gold Bonds, 1980, and National Defence Gold Bonds, 1980 ; ( xvib ) Special Bearer Bonds, 1991 ; ( xvic ) in the case of an individual, being a citizen of India or a person of Indian origin who is not resident in India, during the year ending on the valuation date, any foreign exchange asset. Explanation . For the purposes of this clause, ( a ) a person shall be deemed to be of Indian origin if he or either of his parents or any of his grand-parents was born in undivided India ; ( b ) an individual shall be deemed to be not resident in India during the year ending on the valuation date if in respect of that year the individual is not resident in India within the meaning of the Income-tax Act ; ( c ) "foreign exchange asset" shall have the meaning assigned to it in clause ( b ) of section 115C of the Income-tax Act ; ( xvica ) in the case of an individual, being a citizen of India or a person of Indian origin who is resident in India, during the year ending on the valuation date, any foreign exchange asset [being an asset referred to in sub-clause ( ii ) or sub-clause ( iii ) or sub-clause ( iv ) or sub-clause ( v ) of clause ( f ) of section 115C of the Income-tax Act ], where such asset was not includible by virtue of the provisions of clause ( xvic ) in computing his net wealth on any earlier valuation date. Explanation . For the purposes of this clause, ( a ) an individual shall be deemed to be resident in India during the year ending on the valuation date if in respect of that year the individual is resident in India within the meaning of the Income-tax Act ; ( b ) the expressions "person of Indian origin" and "foreign exchange asset" shall have the same meanings as in the Explanation below clause ( xvic ) ; ( xvid ) in the case of an individual or a Hindu undivided family, such Capital Investment Bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf ; ( xvie ) in the case of an individual or a Hindu undivided family, such debentures issued by a public sector company, as the Central Government may, by notification* in the Official Gazette, specify in this behalf. Explanation . For the purposes of this clause, "public sector company" means any corporation established by or under any Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956) ; ( xvif ) in the case of an individual or a Hindu undivided family, such Relief Bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf ; ( xvig ) in the case of an individual who is a non-resident Indian during the year ending on the valuation date, or a nominee or survivor of such individual or an individual receiving by way of gift from such individual, the bonds specified under sub-clause ( iid ) of clause ( 15 ) of section 10 of the Income-tax Act : Provided that where an individual, who is a non-resident Indian during the year ending on the valuation date in which the bonds are acquired, becomes a resident in India in any subsequent year ending on the valuation date, the provisions of this clause shall continue to apply in relation to such individual. Explanation . For the purposes of this clause, an individual shall be deemed to be a non-resident Indian during the year ending on the valuation date if in respect of that year the individual is a non-resident Indian within the meaning of clause ( e ) of section 115C of the Income-tax Act ; ( xvii ) the amount standing to the credit of an assessee, being a salaried employee, in any provident fund maintained by his employer to which the Provident Funds Act, 1925 (19 of 1925), applies or which is a recognised provident fund within the meaning of clause ( 38 ) of section 2 of the Income-tax Act ; ( xviia ) the amount standing to the credit of : ( a ) an individual ; or ( b ) a Hindu undivided family ; or ( c ) an association of persons or body of individuals consisting, in either case, only of husband and wife governed by the system of community of property in force in the State of Goa and the Union territories of Dadra and Nagar Haveli and Daman and Diu, in any provident fund set up by the Central Government and notified by it in this behalf in the Official Gazette ; ( xviib ) any property held by the trustees on behalf of any provident fund to which the Provident Funds Act, 1925 (19 of 1925), applies or which is a recognised provident fund within the meaning of clause ( 38 ) of section 2 of the Income-tax Act ; ( xviiba ) any property held ( a ) by the Board of Trustees constituted under the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (46 of 1948), on behalf of the Deposit-linked Insurance Fund established under section 3G of that Act ; or ( b ) by the Board of Trustees constituted under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), on behalf of the Deposit-linked Insurance Fund established under section 6C of that Act ; ( xviic ) any property held by the trustees on behalf of any gratuity fund which is an approved gratuity fund within the meaning of clause ( 5 ) of section 2 of the Income-tax Act ; ( xviid ) any property held by the trustees on behalf of any superannuation fund which is an approved superannuation fund within the meaning of clause ( 6 ) of section 2 of the Income-tax Act ; ( xviii ) the property received by an assessee from Government in pursuance of any gallantry or merit award instituted or approved by the Central Government ; ( xviiia ) any property being a medal, trophy or an award in kind received by the assessee for any attainment, work or contribution in any field if such medal, trophy or award in kind is received by the assessee from Government or from a University established by law or an institution affiliated to such University or from any such institution, association or body as is approved for the purposes of this clause by the Central Government. Explanation . Any approval for the purposes of this clause may be given by the Central Government so as to have effect from a date not earlier than the 1st day of April, 1983; ( xix ) the value of any shares held by the assessee in any other company in any case where the assessee is a company ; ( xx ) the value of any equity shares in any company of the type referred to in clause ( d ) of section 45, where such shares form part of the initial issue of equity share capital made by the company after the 31st day of March, 1964, but before the 1st day of June, 1971, for a period of five successive assessment years commencing with the assessment year next following the date on which such company commences the operations for which it has been established ; ( xxa ) the value of any equity shares in any company of the type referred to in clause ( d ) of section 45 which is established with the main object of carrying on the business of manufacture or production of any one or more of the articles or things specified in the list in the Ninth Schedule to the Income-tax Act , where such shares form part of the initial issue of equity share capital made by the company after the 28th day of February, 1975, for a period of five successive assessment years commencing with the assessment year next following the date on which such shares were first issued ; ( xxi ) that portion of the net wealth of a company established with the object of carrying on an industrial undertaking in India within the meaning of the Explanation to clause ( d ) of section 45, as is employed by it in a new and separate unit set up after the commencement of this Act by way of substantial expansion of its undertaking: Provided that ( a ) separate accounts are maintained in respect of such unit ; and ( b ) the conditions specified in clause ( d ) of section 45 are complied with in relation to the establishment of such unit : Provided further that this exemption shall apply to any such company only for a period of five successive assessment years commencing with the assessment year next following the date on which the company commences operations for the establishment of such unit ; ( xxii ) any security of the Central Government or a State Government [not being a security referred to in clause ( xvi ) or clause ( xvia )] ; ( xxiii ) any shares not being shares referred to in clause ( xx ) or clause ( xxa ) in any Indian company where the assessee is an individual or a Hindu undivided family ; ( xxiv ) such debentures, issued by any co-operative society (including a co-operative land mortgage bank or a co-operative land development bank) or any other institution or authority, as the Central Government may, by notification* in the Official Gazette, specify in this behalf ; ( xxiva ) units of a Mutual Fund specified under clause ( 23D ) of section 10 of the Income-tax Act ; ( xxv ) units in the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963) ; ( xxva ) any deposits under such National Deposit Scheme as may be framed by the Central Government and notified* by it in this behalf in the Official Gazette ; ( xxvb ) any deposits made under any scheme referred to in clause ( i ) of sub-section (1) of section 80CCA of the Income-tax Act ; ( xxvc ) the right or interest of the assessee in any annuity plan of the Life Insurance Corporation referred to in clause ( ii ) of sub-section (1) of section 80CCA of the Income-tax Act ; ( xxvi ) any deposits with a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act), or with a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank) ; ( xxvii ) any deposits with a financial corporation which is engaged in providing long-term finance for industrial development in India or with a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes : Provided that the corporation or, as the case may be, the company is for the time being approved by the Central Government for the purposes of clause ( viii ) of sub-section (1) of section 36 of the Income-tax Act ; ( xxviia ) any deposits with the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964 (18 of 1964) ; ( xxviib ) any deposits with any authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both ; ( xxviic ) any deposits made in accordance with the scheme referred to in item ( i ) of sub-clause ( iv ) of clause ( 15 ) of section 10 of the Income-tax Act, by any employee of the Central Government or a State Government ; or a public sector company. Explanation . For the purposes of this clause, "public sector company" means any corporation established by or under any Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956) ; ( xxviid ) any deposits made with the National Housing Bank established under section 3 of the National Housing Bank Act, 1987 (53 of 1987) ; ( xxviii ) any shares in any co-operative society ; ( xxix ) any deposits with a co-operative society, not being deposits referred to in clause ( xxvi ) or clause ( xxx ), made by a member of the society ; ( xxx ) any deposits with a co-operative housing society made by a member of the society to whom a building or part thereof is allotted or leased under a house building scheme of the society, where such deposits have been made under such scheme ; ( xxxa ) the value of one or more dwelling units (each having a plinth area of eighty square metres or less) belonging to the assessee and used solely for the purpose of residence of persons employed by the assessee in any plantation or industrial undertaking belonging to the assessee ; ( xxxi ) the value as determined in the prescribed manner, of assets (not being any land or building or any rights in any land or building or any asset referred to in any other clause of this sub-section) forming part of an industrial undertaking belonging to the assessee. Explanation . For the purposes of clause ( xxxa ), this clause, clause ( xxxii ) and clause ( xxxiv ), the term "industrial undertaking" means an undertaking engaged in the business of generation or distribution of electricity or any other form of power or in the construction of ships or in the manufacture or processing of goods or in mining ; ( xxxii ) the value, as determined in the prescribed manner, of the interest of the assessee in the assets (not being any land or building or any rights in any land or building or any asset referred to in any other clause of this sub-section) forming part of an industrial undertaking belonging to a firm or an association of persons of which the assessee is a partner or, as the case may be, a member ;' *For notified schemes of fixed deposits under clause ( xv ), prior to its omission, refer Direct Taxes Circulars, see also Circular No. 627, dated 27-2-1992. For notified bonds of public sector companies under clause ( xvie ), prior to its omission, refer Direct Taxes Circulars. For debentures notified under clause ( xxiv ), refer Direct Taxes Circulars. For notified National Deposit Scheme under clause ( xxva ), refer Direct Taxes Circulars. Public Provident Fund Scheme was notified under clause ( xviia ) vide Notification No. SO 2432, dated 2-7-1968. Refer Direct Taxes Circulars. 11. Renumbered for "(xxxiii)" by the Finance Act, 1992, w.e.f. 1-4-1993. 12. Inserted by the Finance Act, 1976, w.e.f. 1-4-1977. 13. See Circular No. 411, dated 25-2-1985. For details, see Referencer. 14. Inserted by the Taxation Laws (Amendment) Act, 1984, w.r.e.f. 1-4-1977. 15. Inserted by the Finance Act, 1986, w.e.f. 1-4-1987. 16. Inserted by the Finance Act, 1986, w.r.e.f. 1-4-1977. 17. Inserted by the Finance Act, 1986, w.r.e.f. 1-4-1977. 18. Substituted vide the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999. Before to its substitution, clause (vi), as inserted by the Finance Act, 1993, w.e.f. 1-4-1994, read as under: "(vi) one house or part of a house belonging to an individual or a Hindu undivided family;" 19. For relevant circulars, see Referencer. 20. Before to omission, clause (xxxiv) as inserted by the Finance Act, 1976, w.e.f. 1-4-1976, read as under : "(xxxiv) in the case of an individual, being a citizen of India, who is not resident in India during the year ending on the valuation date, the value of any equity shares in any company of the type referred to in clause (d) of section 45 which is engaged in the business of manufacture or production of any one or more of the articles or things specified in Schedule II or which is certified by the prescribed authority* to have undertaken the export of such percentage of its total production as may be specified in this behalf by the prescribed authority, where such shares form part of the initial issue of the equity share capital made by the company after the 31st day of March, 1976, or where such shares form part of an issue of equity share capital which is certified by the prescribed authority to have been made by the company after the 31st day of March, 1976, for the purposes of expansion or diversification of its industrial undertaking. Explanation . An individual shall be deemed to be not resident in India during the year ending on the valuation date if in respect of that year the individual is not resident in India within the meaning of the Income-tax Act." *See rule 1AA. 21. Before to omission, sub-section (1A), as amended by the Finance Act, 1970, w.e.f. 1-4-1971, the Finance (No. 2) Act, 1971, w.e.f. 1-4-1972, the Finance Act, 1972, w.e.f. 1-4-1973, the Finance Act, 1974, w.e.f. 1-4-1975, the Finance Act, 1975, w.e.f. 1-4-1975, the Finance Act, 1982, w.e.f. 1-4-1983, the Finance Act, 1984, w.e.f. 1-4-1985, the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985, the Finance Act, 1985, w.e.f. 1-4-1986, the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, the Finance Act, 1988, w.e.f. 1-4-1989, the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989 and the Finance Act, 1989, w.e.f. 1-4-1990, read as under : "(1A) Nothing contained in sub-section (1) shall operate to exclude from the net wealth of the assessee any assets referred to in clauses (iv), (xv), (xvi), (xvie), (xxii), (xxiii), (xxiv), (xxiva), (xxv), (xxva), (xxvi), (xxvii), (xxviia), (xxviib), (xxviid), (xxviii), (xxix), (xxxi) and (xxxii), [not being deposits under the Post Office Savings Bank (Cumulative Time Deposits) Rules, 1959*, to the extent the value thereof exceeds, in the aggregate, a sum of five hundred thousand rupees : Provided that where the assets include any assets referred to in clause (xv) or clause (xvi) [not being deposits under the Post Office Savings Bank (Cumulative Time Deposits) Rules, 1959*, which have been owned by the assessee continuously from a date prior to the 1st day of March, 1970, and the value of the assets so included exceeds the limit of five hundred thousand rupees by any amount, such limit shall be raised by the said amount: Provided further that nothing contained in this sub-section shall apply to any assets referred to in clause (xvie) which are sold by a public sector company before the 1st day of June, 1988: Provided also that where the value of any assets, being deposits referred to in clause (xxva), has not been excluded from the net wealth of the assessee under the foregoing provisions of this sub-section, so much of the value of such assets as has not been so excluded shall be excluded from the net wealth of the assessee ; so, however, that the value of the assets so excluded under this proviso shall not exceed twenty-five thousand rupees. Explanation . Where a debt is secured on, or has been incurred in relation to, any asset referred to in this sub-section, the exemption under this sub-section shall be allowed first against the value of the asset on which or in relation to which such debt is secured or incurred and, thereafter, against the value of any other asset so referred to." *Since repealed ; now Post Office Cumulative Time Deposit Rules, 1981. 22. Before to omission, sub-section (2), as amended by the Taxation Laws (Amendment) Act, 1962, w.e.f. 13-12-1962 and the Finance Act, 1968, w.e.f. 1-4-1969, read as under: "(2) Wealth-tax shall not be payable by an assessee in respect of any deposit made by the assessee with the Government or in any security of the Government or of a local authority not specified in clause (xv) or clause (xvi) or clause (xvia) of sub-section (1) which the Central Government may, by notification in the Official Gazette, exempt from wealth-tax, but the value of any deposit or security so exempted shall be included in computing the net wealth of the assessee." 23. Before to omission, sub-section (3), as amended by the Finance Act, 1963, w.e.f. 1-4-1963, the Wealth-tax (Amendment) Act, 1964, w.e.f. 1-4-1965, the Finance Act, 1970, w.e.f. 1-4-1971, the Finance (No. 2) Act, 1971, w.e.f. 1-4-1972, the Finance Act, 1972, w.e.f. 1-4-1973, the Finance Act, 1975, w.e.f. 1-4-1975, the Finance Act, 1982, w.e.f. 1-4-1983, the Finance Act, 1984, w.e.f. 1-4-1985, the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985, the Finance Act, 1985, w.e.f. 1-4-1986, the Finance Act, 1986, w.e.f. 1-4-1986 and the Finance Act, 1988, w.e.f. 1-4-1988, read as under : "(3) Notwithstanding anything contained in sub-section (1), wealth-tax shall be payable by an assessee in respect of the assets referred to in clauses (xv), (xvi), (xvid), (xvie), (xvif), (xix), (xxa), (xxii), (xxiii), (xxiv), (xxv), (xxvi), (xxvii), (xxviia), (xxviib), (xxviii) and (xxix) of sub-section (1) or in sub-section (2) for any assessment year unless the assets are owned by him (a) in the case of shares in a company, from the date on which the shares were first issued by the company, or for a period of at least six months ending with the relevant valuation date, whichever is shorter ; (aa) in the case of Capital Investment Bonds referred to in clause (xvid), or debentures referred to in clause (xvie), or Relief Bonds referred to in clause (xvif), of sub-section (1), from the date on which the Bonds or debentures or Relief Bonds, as the case may be, were subscribed to by the assessee, or for a period of at least six months ending with the relevant valuation date, whichever is shorter; and (b) in the case of other assets, for a period of at least six months ending with the relevant valuation date : Provided that for the purpose of making any assessment for the assessment year commencing on the 1st day of April, 1963, the provisions of clause (b) shall not apply to ten-year defence deposit certificates and twelve-year national defence certificates held by the assessee on the relevant valuation date. Explanation . For the purposes of clause (a) or clause (aa) or clause (b) of this sub-section, in computing the period of six months in relation to any asset (not being any share or security held as stock-in-trade for the purposes of the business of the assessee) in a case where such asset (hereafter in this Explanation referred to as the relevant asset) was acquired by the assessee by conversion of, or in exchange for, or with the proceeds of, or with the money constituting, any other asset exempt from wealth-tax under sub-section (1) or sub-section (2), there shall be included, if the assessee acquired the relevant asset within sixty days after he ceased to own such other asset, so much of the period for which the assessee has owned such other asset as falls within the period of twelve months ending with the relevant valuation date." 24. Before to omission, sub-section (4), as inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, read as under: "(4) Where the assessee is a partner of a firm or member of an association of persons, and the firm or association owns any one or more of the assets which are exempt under sub-section (1), then, for the purposes of his assessment under this Act, the value of his interest in the firm or association shall be deemed to include the value of a part of each such asset of the firm or association in the same proportion in which he is entitled to share the profits of the firm or association and the assessment shall be made after allowing the exemption under sub-section (1) in respect of those assets on the basis of such proportionate value."