Amendment of section 2.
Wealth-tax
109. In section 2 of the Wealth-tax Act, 1957 (27 of 1957), (hereinafter referred to as the Wealth-tax Act), in clause (ea), in sub-clause (i), in item (1), for the words “five lakh rupees”, the words “ten lakh rupees” shall be substituted with effect from the 1st day of April, 2013.
Notes on Clauses:
Clause 109 of the Bill seeks to amend section 2 of the Wealth-tax Act relating to definitions.
The existing provisions of clause (ea) of the aforesaid section 2 provide that in the case where a house is allotted for residential purposes by a company to an employee or an officer or director who is in the whole time employment having a gross annual salary of less than five lakh rupees, such house shall not be included in the definition of assets on which wealth-tax is charged.
It is proposed to amend item (1) of sub-clause (i) of the aforesaid clause so as to raise the aforesaid gross annual salary limit of employee or an officer or director who is in the whole time employment from five lakh rupees to ten lakh rupees.
This amendment will take effect from 1st April, 2013 and will, accordingly, apply in relation to the assessment year 2013-2014 and subsequent assessment years.
