Section 5 - Amendment of Act 27 of 1957 - Rulers Of Indian States (Abolition Of Privileges) Act, 1972

5. Amendment of Act 27 of 1957. In the Wealth-tax Act, 1957, in section 5, in sub-section (1), (a) in clause (iii), for the words any one building in the occupation of a Ruler declared by the Central Government as his official residence , the words, brackets and figures 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 shall be substituted with effect from the 28 th day of December, 1971; (b) to clause (xiv), the following provisos shall be added, namely: 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; .