CIRCULAR-LETTER NO: 14(7)IT/6/WT/79 DATED: 20/08/1979

AMENDMENT IN THE WEALTH-TAX ACT MADE UNDER THE FINANCE ORDINANCE, 1979 -- INSTRUCTIONS REGARDING CIRCULAR-LETTER NO: 14(7)IT/6/WT/79 DATED: 20/08/1979 Amendments in the Wealth Tax Act made under the Finance Ordinance, 1979 C.No. 14(7)IT/6/WT/79 CENTRAL BOARD OF REVENUE GOVERNMENT OF PAKISTAN Subject: AMENDMENT IN THE WEALTH-TAX ACT MADE UNDER THE FINANCE ORDINANCE, 1979 -- INSTRUCTIONS REGARDING. Under the Finance Ordinance, 1979 the following changes have been made with regard to the levy of Wealth Tax: (a) Urban immovable property, exceeding Rs. 5 lacs in value shall be subjected to Wealth Tax only in respect of the amount in excess of the said Rs. 5 lacs. (b) The assessee has now an option to claim exemption on one self-occupied house per family irrespective of its value or to opt for the exemption of Rs. 5 lacs. (c) The Wealth Tax paid is deductible from income of the assessee while computing his taxable income for income tax purpose. (d) The definition of the assessee for the purposes of Wealth Tax has been amended so that an assessee for this purpose would include spouse and dependent children. This means that property held by any or all of the persons falling in this class would be assessed as one unit. Following instructions are hereby issued and should be brought to the notice of all the officers concerned:-- (a) Value of property: The value of houses which are let out shall normally be determined by capitalizing the gross annual rental value for ten years. Fixtures like Fans, heaters, gysers, water pump and cooking range shall be considered as part of the house and any rent allocable separately to such fixtures shall be taken as a part of the gross annual rent of the house. If the owner is charging separate rent for furnishing such as carpets, furniture, curtains, etc, a deduction upto 25% of total gross rental (gross rent of the house and its fixtures plus rent of furnishings) shall be made and balance rent shall be capitalized for ten years to determine the value of the property. (b) Self-occupied houses: Valuation of such houses will pose no problem as the same have been exempted. However, in cases where an assessee does not exercise the option in…