Levy of additional wealth-tax on immovable property situated in specified urban areas. - Income Tax - 424/CBDT

INSTRUCTION NO. 424/CBDT Dated: June 14, 1972 Section(s) Referred: 16(3) Statute: Wealth Tax Act, 1957 Attention of the Commissioners is invited to Instruction No.328 in F.NO.328/56/71 W.T dated 25th September, 1971 regarding the levy of additional wealth-tax on immovable property situated in specified urban areas. 2. A question has been raised about the levy of additional wealth-tax on urban property situated outside India. For the period prior to 1st April, 1971 property situated outside India is obviously not to be taken into account as the scope of the applicability of the relevant provision is confined to the cities and towns in India as specified in para B of Part I of the Schedule to the W.T.Act,1957. The Schedule as amended by the Finance Act, 1970 however, does not expressly speak of areas in India. The question is therefore confined to the interpretation of the amended provision of the Schedule. 3. The matter has been examined and the Board are advised that there is nothing to indicate that any drastic change was intended through the amendment so as to bring the properties situated outside India, which were not hitherto liable, within the ambit of additional taxing authority to ascertain the population of areas from local administration in the foreign countries. It may also not be possible for the Central Government to issue notifications under Rule 1(iii)(b) of the Schedule with regard to properties situated in foreign countries having regard to urbanisation in those areas. The scheme of the Schedule therefore makes it clear that the reference therein can only be to urban areas in India. 4. The properties located outside India would, therefore, not be taken into account in levying additional wealth-tax. 5. The instructions may kindly be brought to the notice of all the officers working in the charge.