WEALTH TAX ACT, 1957

DEDUCTION & COLLECTION OF TAX

AT SOURCE
DETAILED CONTENTS
S. CONTENTS Page
No. No.
1. Wealth Tax 1 – 30
• Section 3 – Charge of Wealth Tax
• Section 45 – Wealth Tax Act not to apply in certain
cases
• Computation of Net Wealth
• Section 2(ea) – Definition of Assets
- Section 2(ea)(i) – Building or Land
Appurtenant Thereto
- Section 2(ea)(ii) –Motor Cars
- Section 2(ea)(iii) – Jewellery
- Section 2(ea)(iv) – Yachts Boats & Aircrafts
- Section 2(ea)(v) –Urban Land
- Section 2(ea)(vi) – Cash in hand
• Section 2(ea)(i) And Section 2(ea)(v)
• Examples
• Section 4 – Deemed Assets
- Section 4(1)(a)(i) – Assets transferred to
spouse
- Section 4(1)(a)(ii) – Assets transferred to
minor child
- Section 4(1)(a)(iii) – Assets transferred to
any person or AOP for benefit of spouse
- Section 4(1)(a)(vi) –Assets transferred
otherwise than irrevocable transfer
- Section 4(1)(a)(v) – Assets transferred to
son’s wife
- Section 4(1)(a)(vi) – Assets transferred to
any person or AOP for benefit of son’s wife
- M.G. Kollankulum
- Section 4(1)(b) –Interest of Partners of a
Firm or members of AOP
- Section 4(1A) – Conversion by an individual
of his self acquired property into joint family
property
- Section 4(5) – Any assets transferred under
 an Irrevocable Transfer
- Section 4(5A) – Gifts by book entries
- Section 4(6) – Holder of Impartible Estate
- Section 4(7) – Member of Co-operative group
housing society
- Section 4(8)(a) – Deemed Ownership on
Possession
• Comparative study of clubbing provisions under
Income-tax Act and Wealth Tax Act
• Valuation of Assets

• Section 5 – Exemption in respect of certain Assets

- Section 5(i) – Property held under Trust
- Trustees of H.E.H. the Nizam’s
Pilgrimage Money Trust Vs. CIT (SC)
- Gangabai Charities (SC)
- Section 5(ii) – Interest in the coparcenary
property of any HUF
- Section 5(iii) – Building in occupation of ruler
- Mohammad Ali Khan (SC)
- Gajsingh (SC)
- Section 5(iv) – Jewellery in the possession of
any Ruler
- Section 5(v) –Returning Indians
- Section 5(vi) –House or plot of land
belonging to an Individual or HUF
• Section 2(m) – Debts
• Section 6 – Exclusion of assets and Debts outside
India
• Annexure –I
- Revocable Transfer
- Irrevocable transfer
• Annexure –II
- Conversion of Self Acquired property into HUF
Property
- Implications under the wealth Tax Act

2. Assessment Procedure Under the Wealth Tax Act 31 – 34

• Section 14(1) – Filing of Wealth Tax Return
• Section 14(2) – Return of net wealth below the
maximum amount not chargeable to tax
• Section 15A – Signing of Return
• Payment of Wealth Tax
• Interest on delay in filing of return
• Assessment procedures under the Income-tax Act and
corresponding sections in Wealth-tax Act
• Provisions of assessment procedures that are different
under the Income-tax act and Wealth-tax Act
3. Valuation Of Assets 35 – 62
• Schedule III Read with Section 7 – Valuation Of
Immovable Property
Section 7 – Value Of Assets How To Be Determined
• Rule 3 To 8 – Determination Of Value Of Immovable
Property As Per Part B Of Schedule –III
• Valuation Of Immovable Property As Per Rules 3, 4 & 5
Of Part B Of Schedule –III
• Rule 6 – Adjustment Of Unbuilt Area Of Plot Of
Land
• Rule 7 – Adjustment For Unearned Increase In The
Value Of Land
• Rule 14 – Valuation Of Assets Of Business
• Rule 15 & 16 – Valuation Of Interest In A Firm Or AOP
• Rule 17 – Valuation Of Life Interest

• Rule 18 & 19 – Valuation Of Jewellery

- Circular No. 646
• Rule 20 – Valuation Of Other Assets
• Rule 21 – Restrictive Covenant To Be Ignored In
Determining The Market Value

4. Liability To Assessment In Special Cases 63 – 67

• Section 19 – Tax Of Deceased Person Payable By Legal
Representative
- CWT Vs. H. S. Chauhan (Delhi High
Court)
• Section 19A – Assessment In Case Of Executors
• Section 20 – Assessment After Partition Of A HUF
• Section 20A – Assessment After Partial Partition Of A
HUF
• Section 21A – Assessment In Case Of Diversion Of
Property, Or Of Income From Property, Geld Under Trust
For Public Charitable Or Religious Purposes
• Section 22 –Assessment Of Persons Residing Outside
India
• Section 33 –Liability Of Transferees Of Properties In
Certain Cases

5. Problems From Past Examinations On Wealth Tax 68 – 126

6. Clubbing Of Income 127 – 143
• Section 60 – Transfer Of Income Where There Is No
Transfer Of Assets
• Section 61 – Revocable Transfer Of Assets
• Section 62 – Irrevocable Transfer Of Assets
• Section 63 – “Transfer” And “Revocable Transfer”
 Defined
• Section 64(1) – Income Of Individual To Include
Income Of Spouse, Minor Child, Etc.
• Section 64(1A) – Income Of Minor Child
• Section 64(2) – Conversion Into HUF Property
• General Law Applicable To Clubbing Of Income
• Section 65 – Liability Of The Transferee In Respect Of
Clubbed Income
• Section 27 –“Owner Of House Property” Defined
• Problems From Past Examinations

7. Deduction And Collection Of Tax At Source 144 – 199

Introduction
• Dematerlisation Of TDS Certificates
• How The New Scheme Shall Work Practically
• Section 200 – Duty Of Person Deducting Tax
• Section 272A – Penalty For Failure to Furnish
Statement
• Section 276B – Prosecution
• Section 197 – Certificate For Deduction At Lower Rate
• Section 197A – No Deduction To Be Made In Certain
Cases
• Section 206AA – Requirement to Furnish Permanent
Account Number Tax Deduction at Higher Rate For
Failure to Furnish PAN
• Section 200A – Processing of Statement of Tax
Deducted at Source
• Section 191 – Direct Payment of Tax By The Assessee
• Section 201 – Consequences Of Failure To Deduct Or
Pay TDS
Tax Deduction At Source
• Surcharge and Education Cess on Rates of TDS
Prescribed
• Section 192 – TDS On Salaries
• Section 193 – TDS On Interest On Securities
• Section 194 – TDS On Dividends
• Section 194A – TDS On Interest Other Than "Interest
On Securities"
• Section 206A – Furnishing Of Quarterly Return In
Respect Of Payment Of Interest To Residents Without
Deduction Of Tax
• Section 194B – TDS On Winnings From Lottery Or
Crossword Puzzle
• Section 194BB – TDS On Winnings From Horse Race
• Section 194C – TDS On Payments To Contractors And
Sub-Contractors
• Section 194D – TDS On Insurance Commission
• Section 194E – TDS On Payment To Non-Resident
 Sportsmen Or Sports Associations
• Section 194G – TDS On Commission, Etc. On The Sale
Of Lottery Tickets
• Section 194H – TDS On Commission Or Brokerage
• Section 194-I – TDS On Rent
- Clarification from CBDT
- Circular No. 5/2001 Dated 2.3.2001
- Extract of Circular No. 5/2002 Dated 30.7.2002
- Circular No. 4/2008 Dated 28.04.2008
- Circular No. 1/2008 Dated 10.1.2008
• Section 194J – TDS On Fees For Professional Or
Technical Services
- Notification No. 88/2008 Dated 21.8.2008
- Clarification from CBDT
• Section 194LA – Payment Of Compensation On
Acquisition Of Certain Immovable Property
• Section 195 – TDS On Other Sums
• Vodafone International Holdings (Bombay High
Court)
• Section 195A – Income Payable "Net Of Tax"
• Section 196 – Interest Or Other Sums Payable To
Government, Reserve Bank Or Certain Corporations
• Section 196B – TDS On Income From Units
• Section 196C – TDS On Income From Foreign Currency
Bonds Or Shares Of Indian Company
• Section 196D – TDS On Income Of Foreign Institutional
Investors From Securities
• Section 198 – Tax Deducted Is Income Received
• Section 199 – Credit For Tax Deducted
• Time Limits

Tax Collection At Source

• Section 206C(1) – Profit And Gains From Business Of
Trading In Alcoholic Liquor, Forest Produce, Scrap, Etc.
• Dematerilisation Of TCS Certificates
• Section 203A – Tax Deduction And Collection Account
Number
• Problems from Past Examinations

EDUCATION CESS OF 3% IS NOT APPLICABLE

FOR WEALTH-TAX