Law: Wealth Tax Act, (XV of 1963)

Section: 5(1)(xv)(i),(ii)

Wealth Tax Act (XV of 1963)-- ----S. 5(1)(xv)(i) & (ii)---C.B.R. Circular NO.IT.J. (42)/85, dated 22nd August. 1985---Exemption in respect of assets created, brought or received from abroad--­Entitlements illustrated---Exemption could be granted to an asset which is created for the first time out of the remittances received or brought in Pakistan through proper Banking Channels and not to subsequently created assets--­C.F.P . Circular No. IT.J.(42)/85, dated 22-8-1985 is compatible and in consonance with the provisions of S.5(1)(xv)(i) & (ii) of Wealth Tax Act, 1963. An assessee can claim exemption regarding an asset which he brings into Pakistan. He is also entitled to this concession if he remits such asset from abroad. This privilege also appears to be available to an assessee who receives an asset from abroad. Suppose a person is coming from Saudi Arabia and brings with him these certificates, Saudi Riyals, U.S. Dollars, Sterling Pounds, jewellery, V.C.R., Colour T.V., Washing Machine, etc. etc. All these assets subject to foreign exchange regulations and customs and sales tax laws would be his assets exempt from wealth-tax for the reason that he has brought them in Pakistan and he would be entitled to this concession in the year in which he brings them into Pakistan and the following five years. Now, suppose a person working in Dubai remits U.S. Dollars and Sterling Pounds to his foreign exchange account maintained in Pakistan. These Dollars and Sterling Pounds would be his assets in Pakistan exempt from wealth-tax as they have been remitted by him. Similarly, if a person receives U.S. Dollars, Sterling Pounds, Saudi-Riyals and capital goods like Car, T.V., V.C.R., etc. etc. from his son working abroad, all these assets would again be exempt from wealth tax as they would be deemed to have been received by him from outside Pakistan. In all these cases the exemption would be available under paragraph (i) of clause (xv) of subsection (i) of section 5 of the Act. Now, suppose a person who has brought to Pakistan travellers cheque in U.S. Dollars and purchased the certificates out of them, it would be said that he has created an asset in Pakistan out of…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492