Section 64 - Amendment of section 16 - Direct Tax Laws (Amendment) Act, 1989

64. Amendment of section 16. In section 16 of the Wealth-tax Act [as substituted by section 138 of the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988)],- (a) in sub-section (1), in clause (a), after the proviso, the following proviso shall be inserted, namely :- Provided further that an intimation for any tax or interest due under this clause shall not be sent after the expiry of two years from the end of the assessment year in which the net wealth was first assessable. ; (b) after sub-section (1), the following sub-section shall be inserted, namely :- (1A) (a) Where in the case of any person, the net wealth, as a result of the adjustments made under the proviso to clause (a) of sub-section (1), exceeds the net wealth declared in the return by any amount, the Assessing Officer shall,- (i) further increase the amount of tax payable under sub-section (1) by an additional wealth-tax calculated at the rate of twenty per cent. of the tax payable on such excess amount and specify the additional wealth-tax in the intimation to be sent under sub-clause (i) of clause (a) of sub-section (1); (ii) where any refund is due under sub-section (1), reduce the amount of such refund by an amount equivalent to the additional wealth-tax calculated under sub-clause (1). (b) Where as a result of an order under section 23 or section 24 or section 25 or section 27 or section 29 or section 35, the amount on which additional wealth-tax is payable under clause (a) has been increased or reduced, as the case may be, the additional wealth-tax shall be increased or reduced accordingly, and,- (i) in a case where the additional wealth-tax is increased, the Assessing Officer shall serve on the assessee a notice of demand under section 30; (ii) in a case where additional wealth-tax is reduced, the excess amount paid, if any, shall be refunded. Explanation .- For the purposes of this sub-section, tax payable on such excess amount means the difference between the tax on the net wealth and the tax that would have been chargeable had such net wealth been reduced by the amount of adjustments.