Wealth-tax Act, 1957--Liability to wealth-tax of annuities receivable on annuity deposits under the Income-tax Act. - Income Tax - 4/8/69-WT

Circular Number: 4/8/69-WT File Number: 4/8/69-WT Dated 10/06/1969 Wealth-tax Act, 1957--Liability to wealth-tax of annuities receivable on annuity deposits under the Income-tax Act. Reference is invited to the clarifications contained in the Board's Circular No. 3(WT) of 1968 dated 27th July, 1968, regarding the liability to wealth-tax of the value of the annuities receivable on the annuity deposits made under the relevant provisions of the Income-tax. On a reconsideration of the matter, the Board have decided that the annuities receivable under the Annuity Deposit Scheme are generally non-commutable and therefore the value thereof should be exempted from wealth-tax under section 2(e)(iv) of the Wealth-tax Act, 1957. It is proposed to make, in this respect, a clarificatory amendment to section 5(1) with retrospective effect, by the Taxation Laws (Amendment) Act, 1969. 2. In all the pending assessments, the value of such annuities will not be added to the net wealth. Besides, as far as possible, assessments which have already been completed will be rectified suo moto by the Wealth-tax Officer, so that the commuted value of the annuity deposit if included in each case is deleted. Applications for such rectifications by the assessees would be accepted by the Wealth-tax Officer.