Wealth Tax Act, 1957

1. Trusts
2. Artificial Judicial Persons
3. Partnership firms
4. Association of persons (AOPs)
5. A company registered under Section 25 of the Company Act, 1956
6. Co-operative Societies
7. Social clubs
8. Political parties
9. Mutual funds specified under Section 10 Clause (23D) of the Income Tax Act

Wealth Tax Act in 1957

The Wealth Tax Act, 1957 oversees the process of taxation that is associated with the combined wealth of an Individual, a Hindu Undivided Family (HUF), or a Company possesses on the Valuation Date. Wealth Tax is not a part of the Income Tax Return and is a direct tax which is required to be filed separately at the end of a financial year.

The Wealth Tax Act, 1957 is divided into different chapters, each are explained below

PRELIMINARY:

Chapter with their own subsections.

Chapter I:

1. Section 1 : Short title, extent and commencement
2. Section 2 : Definitions

Chapter II:

Charge of Wealth-Tax and Assets subject to such Charge:

1. Section 3 : Charge of wealth-tax
2. Section 4 : Net wealth to include certain assets
3. Section 5 : Exemptions in respect of certain assets
4. Section 6 : Exclusion of assets and debts outside India
5. Section 7 : Value of assets, how to be determined

Chapter III:

Wealth-Tax Authorities:

1. Section 8 : Wealth-tax authorities and their jurisdiction
2. Section 8A : Powers of Commissioner respecting specified areas, cases, persons, etc.
3. Section 8AA : Concurrent jurisdiction of Inspecting Assistant Commissioner and Wealth-tax Officer
4. Section 8B : Power to transfer cases
5. Section 9 : Control of wealth-tax authorities
6. Section 9A : Commissioners of Wealth-tax (Appeals)
7. Section 10 : Instructions to subordinate authorities
8. Section 10A : Directors of Inspection
9. Section 11 : Jurisdiction of Assessing Officers and power to transfer cases
10. Section 11A : Inspector of Wealth-tax
11. Section 11AA : Commissioner competent to perform any function or functions
12. Section 11B : Wealth-tax Officer competent to perform any function or functions
13. Section 12 : Control of wealth-tax authorities
14. Section 12A : Appointment of Valuation Officers
15. Section 13 : Wealth-tax authorities to follow orders, etc., of the Board
16. Section 13A : Powers of Director-General or Director, Chief Commissioner or Commissioner and Joint Commissioner to make enquiries

Chapter IV:

Assessment:

1. Section 14 : Return of wealth
2. Section 14A : Power of Board to dispense with furnishing documents, etc., with return of wealth.
3. Section 14B : Filing of return in electronic form.
4. Section 15 : Return after due date and amendment of return
5. Section 15A : Return by whom to be signed
6. Section 15B : Self-assessment
7. Section 15C : Provisional assessment
8. Section 16 : Assessment
9. Section 16A : Reference to Valuation Officer
10. Section 17 : Wealth escaping assessment
11. Section 17A : Time limit for completion of assessment and reassessment
12. Section 17B : Interest for defaults in furnishing return of net wealth
13. Section 18 : Penalty for failure to furnish returns, to comply with notices and concealment of assets, etc.
14. Section 18A : Penalty for failure to answer questions, sign statements, furnish information, allow inspection, etc.
15. Section 18B : Power to reduce or waive penalty in certain cases
16. Section 18BA : Power of Commissioner to grant immunity from penalty.

Chapter IVA:

Special Provision For Avoiding Repetitive Appeals:

Section 18C : Procedure when assessee claims identical question of law is pending

before High Court or Supreme Court

Chapter IVB:

Charge of Additional Wealth Tax in Certain Cases:

Section 18D : Additional wealth tax

Chapter V:

Liability to Assessment in Special Cases:

1. Section 19 : Tax of deceased person payable by legal representative
2. Section 19A : Assessment in the case of executors
3. Section 20 : Assessment after partition of a Hindu undivided family
4. Section 20A : Assessment after partial partition of a Hindu undivided fami­ly
5. Section 21 : Assessment when assets are held by courts of wards, administra­tors-general, etc.
6. Section 21A : Assessment in cases of diversion of property, or of income from property,
7. held under trust for public charitable or religious purposes
8. Section 21AA : Assessment when assets are held by certain associations of persons
9. Section 22 : Assessment of persons residing outside India

Chapter VA:

Settlement of Cases:

1. Section 22A : Definitions
2. Section 22B : Wealth-tax Settlement Commission
3. Section 22BA : Jurisdiction and powers of Settlement Commission
4. Section 22BB : Vice-Chairman to act as Chairman or to discharge his functions in certain circumstances
5. Section 22BC : Power of Chairman to transfer cases from one Bench to another
6. Section 22BD : Decision to be by majority
7. Section 22C : Application for settlement of cases
8. Section 22D : Procedure on receipt of an application under section 22C
9. Section 22DD : Power of Settlement Commission to order provisional attachment to protect
10. revenue
11. Section 22E : Power of Settlement Commission to reopen completed proceedings
12. Section 22F : Powers and procedure of Settlement Commission
13. Section 22G : Inspection, etc., of reports
14. Section 22H : Powers of Settlement Commission to grant immunity from prosecution
15. Section 22HA : Abatement of the proceeding before Settlement Commission
16. Section 22HAA: Credit for tax paid in case of abatement of proceedings
17. Section 22I : Order of settlement to be conclusive
18. Section 22J : Recovery of sums due under order of settlement
19. Section 22K : Bar on subsequent application for settlement
20. Section 22L : Proceedings before the Settlement Commission to be judicial proceedings
21. Section 22M : Certain persons who have filed appeals to the Appellate Tribunal entitled to

make applications to the Settlement Commission

Chapter VI:

Appeals, Revisions and References:

1. Section 23 : Appeal to the Deputy Commissioner (Appeals) from orders of Assessing Officer
2. Section 23A : Appealable orders before Commissioner (Appeals)
3. Section 24 : Appeal to the Appellate Tribunal from orders of the Deputy Commissioner (Appeals)
4. Section 25 : Powers of Commissioner to revise orders of subordinate authorities
5. Section 26 : Appeal to the Appellate Tribunal from orders of enhancement by Chief Commissioners or Commissioners
6. Section 27 : Reference to High Court
7. Section 27A : Appeal to High Court
8. Section 28 : Hearing by High Court
9. Section 29 : Appeal to Supreme Court
10. Section 29A : Tax to be paid notwithstanding reference, etc.
11. Section 29B : Definition of High Court

Chapter VII:

Payment and Recovery of Wealth Tax:

1. Section 30 : Notice of demand
2. Section 31 : When tax, etc., payable and when assessee deemed in default
3. Section 32 : Mode of recovery
4. Section 33 : Liability of transferees of properties in certain cases
5. Section 34 : Restrictions on registration of transfers of immovable property in certain cases

Chapter VIIA:

Refunds:

1. Section 34A : Refunds

Chapter VIIB:

Registered Valuers:

1. Section 34AA : Appearance by registered valuers
2. Section 34AB : Registration of valuers
3. Section 34AC : Restrictions on practice as registered valuer
4. Section 34ACC: Furnishing of particulars in certain cases
5. Section 34AD : Removal from register of names of valuers and restoration
6. Section 34AE : Existing registered valuers to apply afresh

Chapter VIII:

Miscellaneous:

1. Section 34B : Transfers to defraud revenue to be void
2. Section 34C : Provisional attachment to protect revenue in certain cases
3. Section 35 : Rectification of mistakes
4. Section 35A : Wilful attempt to evade tax, etc.
5. Section 35B : Failure to furnish returns of net wealth
6. Section 35C : Failure to produce accounts, records, etc.
7. Section 35D : False statement in verification, etc., made under certain provisions of the Act
8. Section 35E : False statement in verification mentioned in section 34AB
9. Section 35EE : Failure to furnish particulars under section 34ACC
10. Section 35EEE: Contravention of order made under second proviso to sub-section (1) or
11. sub-section (3A) of section 37A
12. Section 35F : Abetment of false return, etc.
13. Section 35G : Punishment for second and subsequent offences
14. Section 35GA : Power of Commissioner to grant immunity from prosecution.
15. Section 35H : Offences by Hindu undivided families
16. Section 35HA : Offences by companies
17. Section 35I : Prosecutions to be with the previous sanction of certain wealth-tax
18. authorities and their power to compound offences
19. Section 35J : Certain offences to be non-cognizable
20. Section 35K : Bar on prosecution and on inadmissibility of evidence in certain circumstances
21. Section 35L : Jurisdiction of courts
22. Section 35M : Section 360 of the Code of Criminal Procedure, 1973, and the Probation of Offenders Act, 1958, not to apply
23. Section 35N : Presumption as to books of account, etc., in certain cases
24. Section 35O : Presumption as to culpable mental state
25. Section 36 : Proof of entries in records or documents
26. Section 36A : Power to tender immunity from prosecution
27. Section 37 : Power to take evidence on oath, etc.
28. Section 37A : Power of search and seizure
29. Section 37B : Power to requisition books of account, etc.
30. Section 37C : Application of retained assets
31. Section 38 : Information, returns and statements
32. Section 38A : Powers of Valuation Officer, etc.
33. Section 39 : Effect of transfer of authorities on pending proceedings
34. Section 40 : Computation of periods of limitation
35. Section 41 : Service of notice
36. Section 42 : Notice deemed to be valid in certain circumstances.
37. Section 42A : Publication of information respecting assessees
38. Section 42B : Disclosure of information respecting assessees
39. Section 42C : Return of wealth, etc., not to be invalid on certain grounds
40. Section 42D : Presumption as to assets, books of account, etc.
41. Section 43 : Bar of jurisdiction
42. Section 44 : Appearance before wealth-tax authorities by authorised representatives
43. Section 44A : Agreement for avoidance or relief of double taxation with respect to wealth-tax
44. Section 44B : Countries with which no agreement exists
45. Section 44C : Rounding off of net wealth
46. Section 44D : Rounding off of tax, etc
47. Section 45 : Act not to apply in certain cases
48. Section 46 : Power to make rules
49. Section 46A : Power to make exemption, etc., in relation to certain Union territories
50. Section 47 : Power to remove difficulties
51. Annex : Text of section 40 of the Finance Act, 1983
52. Appendix : Certain remaining provisions of allied acts referred to in Wealth Tax Act
53. Schedule i : Rates of Wealth Tax
54. Schedule ii : Omitted by the Finance Act, 1992, with effect from 1-4-1993
55. Schedule iii : Rules for determining the value of assets

Wealth Tax Act 2015

As of Feb 28th 2015, the Wealth Tax was abolished and replaced with an additional surcharge of 2% on entities with a taxable income of Rs 1 crore per annum. The levy of wealth tax under the Wealth-tax Act, 1957 will be eliminated with effect from the 1st April, 2016. This means that the return of wealth need not be filed for the Financial Year 2015-16

Wealth Tax Act 1957 Bare Act

The Wealth Tax Act 1957 Bare Act is essentially an expression stating only what the act does and can do. It is almost exactly similar to the Wealth Tax Act 1957, with only certain subsections omitted in order to lay bare the act in its most basic form.

The subsections omitted are

1. 8A
2. 8AA
3. 8B
4. 9A
5. 10A
6. 11A
7. 11AA
8. 11B
9. 12
10. 13
11. 15C
12. 18D
13. 22M
14. 23A
15. 34
16. 42
17. Schedule ii