Computation of net wealth.
113. (1) The net wealth of a person referred to in sub-sections (1) and (2) of section 112 shall be the amount computed in accordance with the formula—
A-B
Where
A = the aggregate of the value on the valuation date, of all the specified assets, wherever located, belonging to the person referred to in this section, computed in accordance with the provisions of sub-section (5);
B = the aggregate of the value on the valuation date, of all the debts, owed by the person, which have been incurred in relation to the specified assets.
(2) The specified assets referred to in sub-section (1) shall be the following, namely:—
(a) any building or land appurtenant thereto (hereinafter referred to as "house"), used for any purpose;
(b) any farm house situated within twenty-five kilometers from local limits of any municipality or municipal corporation (by whatever name called) or a Cantonment Board;
(c) any urban land;
(d) motor car, yacht, boat, helicopter and aircraft other than those used by the assessee in the business of running them on hire or as stock-in-trade;
(e) jewellery, bullion, furniture, utensils or any other article made wholly or partly of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, other than those used by the assessee as stock-intrade;
(f) archaeological collections, drawings, paintings, sculptures or any other work of art;
(g) watch having value in excess of fifty thousand rupees;
(h) cash in hand, in excess of two lakh rupees, of individuals and Hindu undivided families;
(i) deposit in a bank located outside India, in case of individuals and Hindu undivided families, and in the case of other persons any such deposit not recorded in the books of account;
(j) any interest in a foreign trust or any other body located outside India (whether incorporated or not) other than a foreign company; and
(k) any equity or preference shares held by a resident in a controlled foreign company, as referred to in the Twentieth Schedule.
(3) The specified assets referred to in sub-section (2) shall not include the following, namely:—
(a) 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;
(b) jewellery in the possession of any Ruler, not being his personal property, which has been recognised as his heirloom-—
(i) by the Central Government before the commencement of the Wealth-tax Act, 1957, as it stood before the commencement of this Code; or
(ii) by the Board at the time of his first assessment to wealth-tax under the Wealth-tax Act, 1957, as it stood before the commencement of this Code;
(c) the value of the assets located outside India, if the person is a non resident; and
(d) any one house or part of a house or one vacant plot of land not exceeding five hundred square metres of area belonging to an individual or a Hindu undivided family.
(4) The house referred to in clause (a) of sub-section (2) shall not include the following, namely:—
(a) a house meant exclusively for residential purposes allotted by a company to an employee;
(b) any house for residential or commercial purposes which forms part of stock-in-trade;
(c) any house which the assessee may occupy for the purposes of business carried on by him;
(d) any house that has been let-out for a minimum period of three hundred days in the financial year;
(e) any house in the nature of commercial establishments or complexes.
(5) The value of any specified asset, other than cash, referred to in sub-section (2), shall be determined in such manner as may be prescribed.
(6) In this Chapter, "valuation date" means the 31st day of March in the financial year.
