CIRCULAR-LETTER NO: 14(7)-WT/IT-VI/79 DATED: 21/08/1979

AMENDMENTS IN THE WEALTH TAX ACT MADE UNDER THE FINANCE ORDINANCE, 1979--CLARIFICATION REGARDING CIRCULAR-LETTER NO: 14(7)-WT/IT-VI/79 DATED: 21/08/1979 GOVERNMENT OF PAKISTAN CENTRAL BOARD OF REVENUE Islamabad, the 21st August, 1979. Subject: AMENDMENTS IN THE WEALTH TAX ACT MADE UNDER THE FINANCE ORDINANCE, 1979--CLARIFICATION REGARDING. Under the Finance Ordinance, 1979, the following changes have been made with regard to the levy of Wealth Tax.-- (a) Urban immoveable 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 exeption on one self-occupied house per family irrespective of its value or to opt for the exemption of Rs. 5 lacs. (c) 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. (d) That Wealth Tax paid is deductible from income of the assessee while computing his taxable income for income tax purpose. 2. It may be noted that under these provisions urban immoveable property held by any or all the members of a family would be assessed as one unit. If the husband, wife or dependent children separately own property in their respective names, the discretion would lie with the family to file the Wealth Tax return in the name of any one member of the faimly who owns the property. This option is being left with the assessee considering the fact that Wealth Tax paid by an assessee has now been made an admissible deduction for the purposes of income tax and the tax payers may like to file their Wealth Tax returns keeping this position in view so as to be able to avail the maximum advantage in terms of their overall liability in respect of Wealth Tax and Income Tax. In cases where no return is filed by any member of the family within the prescribed time-limit, the Wealth Tax Officers may exercise their poweres to determine as to who should be the assessee for the purpose of filing the return. 3. For the purpose of…