CIRCULAR-LETTER NO: 8(9)-WT/IT-V/79 DATED: 30/06/1985

BUDGET 1985-86-AMENDMENTS IN THE WEALTH-TAX ACT, 1963 - INSTRUCTIONS REGARDING CIRCULAR-LETTER NO: 8(9)-WT/IT-V/79 DATED: 30/06/1985 GOVERNMENT OF PAKISTAN CENTRAL BOARD OF REVENUE SUBJECT: BUDGET 1985-86-AMENDMENTS IN THE WEALTH-TAX ACT, 1963 - INSTRUCTIONS REGARDING. The amendments made in the Wealth-tax Act, 1963 through the Finance Act, 1985 are explained as follows:- 1. Exemption of Public Companies Public companies which were brought in the ambit of wealth-tax in respect of the shopping arcades attached to their hotels, have now been exempted. Hence Section 2(e)(iii) has been deleted. II. Foreign Remittances. The existing clause (xv) of Section 5(1) required the person claiming exemption of assets brought into Pakistan to remain a non-resident for its exemption period. Under the existing provisions assets brought from abroad enjoyed exemption so long as they remained in the same form, except for the remittances invested in purchase of shares of public companies. Under the revised clause (xv) there is no restriction regarding the residential status of the assessee and the assets would remian exempt for 6 years even if they changed form. 2. However, the following precautions need to be taken by the assessing officer, namely:- (i) The owner of the remittances be determined as he would be an assessee who would alone enjoy the exemption for the subsequent five years. (ii) The value of the remittances be determined in the first year and the exemption period of the following five years be incorporated in the body of the assessment order. (iii) As provided for in the new proviso to clause (xv), in the case of conversions the portion of the foreign remittances be determined, and only that portion be allowed during the exemption period. III. De-Clubbing of Properties The immovable properties belonging to a husband and wife will be assessed individually alongwith their movable property. The property of the minors will, however, be clubbed with either of the parent-to be determined by the wealth tax officer, with the removal of the distinction between movable and immovable properties, it may be noted that the entire property of the minor will now be clubbed, not only…