Updated: Wednesday April 09, 2014/AlArbia'a
Jamada El Thaniah 09, 1435/Budhavara
Chaitra 19, 1936, at 05:32:15 PM
The Wealth-Tax Act, 1963
1. Short title, extent and commencement.- (1) This Act may be called the Wealth-Tax Act, 1963.
(2) It extends to the whole of
(3) It shall come into force on the first day of July,
1963.
2. Definitions.-- (1) In this Act, unless the context otherwise requires,---
(1) “Appellate Additional Commissioner” means a person
appointed to be Appellate Additional Commissioner under section 9;
(2) “Appellate Tribunal” means the Appellate Tribunal
appointed under section 133 of the Income Tax Ordinance, 1979 (XXXI of 1979);
(3) “assessee” means a person by whom any tax or any
other sum of money is payable under this Act, and includes,---
(i) every person in respect of whom any proceeding
under this Act has been taken for the assessment of his wealth or the wealth of
any other person in respect of which he is assessable or of the amount of
refund due to him or to such other person; and
(ii) every person who is required to furnish a return of wealth under any of
the provisions of this Act;
(4) “assessment year” means the year for which tax is
chargeable under section 3;
(5) “assets” includes,---
(i) in the case of an individual and a Hindu undivided
family, property of every description movable or immovable, except,---
(a) growing crops, grass or standing trees on
agricultural land; and
(b) any building owned or occupied by a cultivator or
receiver of rent or revenue out of agricultural land:---
Provided that the building is on or in the immediate
vicinity of the landand is a building which the cultivator or the receiver of
rent or revenue by reason of his connection with the land requires as a store
house or an outhouse; and
(ii) in the case of a firm, an association of persons
or a body of individuals, whether incorporated or not, and a company, immovable
property held for the purpose of the business of construction and sale, or
letting out, of property;
Explanation. - For removal of doubt, it
is hereby declared that immovable property and the purpose, referred to in this
sub-clause, includes,---
(i) immovable property held for the purpose of letting
out, or business of letting out, of property;
(ii) immovable property held for the purpose of
construction and letting out of property; and
(iii) immovable property held for the purpose of construction
and sale of property.
(6) “Board” means the Central Board of Revenue
constituted under the Central Board of Revenue Act, 1924 (IV of 1924);
(7) “Capital Value Tax” means any tax paid or
collected under section 7 of the Finance Act, 1989 (V of 1989);
(8) “Commissioner” means a person appointed to be a
Commissioner of Wealth-tax under section 9 and includes a Director, Intelligence
and Investigation;
(9) “company” means a company as defined in the
Companies Ordinance, 1984 (XLVII of 1984), but does not include a company,---
(i) in which not less than fifty per cent of the
shares are held by the Government; or
(ii) the shares of which were the subject of dealing
in a registered stock exchange in Pakistan at any time during the income year
and remained listed on the stock exchange till the close of that year;
(10) “Deputy Commissioner” means a person appointed to
act as a Deputy Commissioner of Wealth-tax, an
Assistant Commissioner of Wealth Tax, a Wealth-tax Officer, a
Special Officer, a Tax Recovery Officer and a Deputy Director or Assistant
Director, Intelligence and Investigation;
(11) “Director-General of Inspection” means a person
appointed to be a Director-General of Inspection under section 138L of the Income
Tax Ordinance, 1979 (XXXI of 1979), and includes the Directors, Additional
Directors, Deputy Directors and Assistant Directors of Inspection;
(12) “Director-General of Intelligence and
Investigation” means a person appointed to be a Director General of
Intelligence and Investigation under section 4 of the Income Tax Ordinance,
1979 (XXX1 of 1979), and includes a person appointed to be a Director or an
Additional Director or Deputy Director or an Assistant Director of
Investigation and Intelligence or any other officer, howsoever designated,
appointed by the Central Board of Revenue for the purpose of any or all
functions performed by Director-General of Intelligence and Investigation and
any other function that may be assigned to him;
(13) “Director- General of Training and Research”
means a person appointed to be a Director- General Training and Research under
section 4 of the Income Tax Ordinance, 1979 (XXXI of 1979);
(14) “executor” means an executor or administrator of
the estate of a deceased person;
(15) “Inspecting Additional Commissioner” means a
person appointed to be an Inspecting Additional Commissioner of Wealth-tax
under section 9 and includes an Additional Director, Intelligence and
Investigation;
(16) “net wealth” means the amount by which the
aggregate value computed in accordance with the provisions of this Act of all
the assets, wherever located, belonging to the assessee on the valuation date,
including assets required to be included in his net wealth as on that date
under this Act, is in excess of the aggregate value of all the debts owed by
the assessee on the valuation date other than,---
(i) debts which under section 6 are not to be taken
into account; and
(ii) debts which are secured on, or which have been
incurred in relation to, any asset in respect of which wealth-tax is not
payable under this Act;
(iii) where the right, title or interest to, or in any
immovable property other than agricultural land, vests in more than one person,
such persons shall, in respect of such property, be assessed as an association
of persons and the value of such right, title or interest shall not be included
in the net wealth of an individual provided that wealth tax is charged on such
right, title or interest.
Explanation.-For the purpose of this clause,---
(i) any property owned by any minor child of the
assessee shall be deemed to belong to the assessee; and
(ii) “assessee” shall be the parent determined by the
Deputy Commissioner;
(17) “Prescribed” means prescribed by rules made under
this Act;
(18) “Principal officer”, used with reference to a
company, means the secretary, manager, managing agent or managing director of
the company, and includes any person connected with the management of the
affairs of the company upon whom the Deputy Comimissioner has served a notice
of his intention of treating him as the principal officer thereof;
(19) “Public company” means a company,---
(i) in which not less than fifty per cent of the
shares are held by the Government; or
(ii) the shares of which were listed on a registered stock exchange in Pakistan
at any time during the previous year and remained so listed till the close of
that year;
(20) “Regional Commissioner of Wealth-tax” means a
person appointed to be a Regional Commissioner of Income Tax under section 4 of
the Income Tax Ordinance, 1979 (XXXI of 1979) and includes the Director
General, Intelligence and Investigation;
(21) “tax” means wealth-tax and additional tax
chargeable or payable under this Act, and includes any penalty, surcharge, fee
or other charge or any sum or amount leviable or payable under this Act;
(22) “Tax Recovery Officer” means a person appointed
to be a Tax Recovery Officer under the Income Tax Ordinance, 1979 (XXXI of
1979);
(23) “urban area” means an area falling within the
limit of metropolitan corporation, municipal corporation, municipal committee,
town committee, cantonment board or the
(24) “valuation date”, in relation to any year for
which an assessment is to be made under this Act, means the last day of the
year previous to the year for which the tax is chargeable under this Act;
(25) “valuer” means a person appointed to be a valuer
under section 9; and
(26) “Wealth-tax Inspector” means a person appointed
to be a Wealth- tax Inspector under section 9.
(2) The words and expressions used but not defined in
this Act shall have the meaning assigned to them under the Income Tax Ordinance,
1979 (XXXI of 1979).
3. Charge of Wealth-tax.-- Subject to the other provisions contained in this Act,
there shall be charged for every financial year commencing on and from the
first day of July, 1963, a tax (hereinafter referred to as wealth-tax) in
respect of the net wealth or assets on the corresponding valuation date of
every individual, Hindu undivided family, firm, association of persons or body
of individuals, whether incorporated or not, and company at the rate or rates
specified in the Schedule:---
Provided that wealth-tax shall not be chargeable in
respect of any assessment year commencing on or after the first day of July,
2001.
3A.Tax on undisclosed assets.-- (I) Notwithstanding anything contained in this Act,
where any person has not, for any year or years, declared any assets chargeable
to tax under this Act or has declared the value of any asset lower than the
value determinable under the provisions of the Act, such person may declare
such asset or the value of the asset in accordance with the provisions of the
scheme to be made by the Central Board of Revenue.
(2) Subject to sub-section (3), the tax on the value
of assets declared under sub-section (I) shall be charged at the rate of seven
and one half percent of the value of the asset.
(3) No tax under this Act (including this section)
shall be payable in respect of the value of the assets declared under this
section in respect of which income tax has been paid in accordance with the
provisions of section 59D of the Income Tax Ordinance, 1979 (XXXI of 1979).
(4) Subject to sub-sections (5) and (6), where any
assets are declared in accordance with the scheme made under sub-section (I),
the person declaring such assets shall not be subjected to any additional tax,
penalty, penal action or prosecution for any year for and upto the assessment
year 1997-98.
(5) Nothing contained in this section shall apply to
any person in whose case assets have been discovered as a result of or in
respect of which proceedings have been initiated by way of government
investigation/inquiry.
(6) The amnesty provided in sub-section (4) shall be
available on the following conditions, namely:---
(i) that the return of assets including the
undisclosed assets for and upto the assessment year 1997-98 is filed as
specified in section 14;
(ii) that the full and correct declaration of assets
is made in the return;
(iii) that the basis of valuation of assets and the
payment of tax shall be as follows:---
VALUATION OF ASSETS
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Residential Properties |
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– |
Plots and open Lands |
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Equal to the value specified by the District
Collector for the purposes of Stamp Duty on June 30, 1997. |
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– |
Superstructure |
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At the rate of Rs. 300 per square foot. |
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– |
Apartments/flats |
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As registered for the purposes of Stamp Duty. |
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Commercial Properties |
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– |
Plots and open lands |
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Equal to the auction value or the value specified by
the District Collector for the purposes of Stamp Duty as on June 30, 1997,
whichever is higher. |
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– |
Superstructure |
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At the rate of Rs. 300 per square foot. |
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Shares/stocks of listed Companies (including NIT
Units) |
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Price quoted at the stock exchange on June 12, 1997. |
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Shares /stocks of companies not quoted on recognised
stock exchange. |
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The face value or break-up value whichever is higher
on June 30, 1997. |
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Investment in Government Schemes (i.e. NDSC, Postal
Certificates, Bonds, Government, Securities etc.) |
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Value as on June 30, 1997. |
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Cash and Prize Bonds |
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The face value. |
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Motor Vehicles |
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(a) Imported motor vehicles. – C.I.F. value plus the
amount of all charges, customs duty, sales tax, levies, octroi, fees and
other duties and taxes leviable thereon and the costs incurred till their
registration. |
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Other assets |
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As per provisions under this Act. |
Payment of Tax
The wealth tax payable on the undisclosed wealth
declared by any person under the scheme made under sub-section (1) shall be
paid by the declarant before furnishing the return and the return shall be
accompanied by proof thereof.
3B. Charge of surcharge.-- In addition to the wealth tax charged for any year
there shall be charged, levied and paid for any year a surcharge at the rate or
rates specified in Part
4. Net wealth to include certain assets.-- (1) In computing the net wealth of an individual,
there shall be included, as belonging to him,---
(a) the value of assets which on the valuation date
are held,---
(iii) by a person or association of persons to whom
such assets have been transferred by the individual otherwise than for adequate
consideration for the benefit of the individual or his wife or minor child, or
(iv) by a person or association of persons to whom
such assets have been transferred by the individual otherwise than under an
irrevocable transfer, whether the assets referred to in any of the sub-clauses
aforesaid are held in the form in which they were transferred or otherwise;
(b) where the assessee is a partner in a firm or a
member of an association of persons, the value of his interest in the firm or
association determined in the prescribed manner.
(2) In making any rules with reference to the
valuation of the interest referred to in clause (b) of sub-section (1), the
Board shall have regard to the law for the time being in force relating to the
manner in which accounts are to he settled between partners of a firm and
members of an association on the dissolution of a firm or association, as the
case may be.
(3) Where the value of any assets is to be included in
the net wealth of an assessee in accordance with clause (a) of sub-section (1),
there shall be deducted from such value any debts owing on the valuation date
by the transferee mentioned in that sub-section in so far as such debts are
referable to the assets.
(4) Nothing contained in clause (a) of sub-section (1)
shall apply to any such transfer as is referred to therein made by an
individual before the first day of July, 1962, and the value of any assets so
transferred shall not be included in the computation of his net wealth.
(5) The value of any assets transferred otherwise than
under an irrevocable transfer shall be liable to be included in computing the
net wealth of the transferor.
Explanation.- For the purposes of this section the expression “transfer” includes
any disposition, trust, covenant, agreement or arrangement.
5. Exemptions.-- (1) The assets or classes of asset, or person or classes of persons
specified in the Second Schedule shall be,---
(a) exempt from tax under this Act subject to the
conditions and to the extent specified therein; or
(b) liable to tax at such rates, which are less than
the rates specified in the First Schedule, as are specified therein; or
(c) allowed a reduction in tax liability, subject to
the conditions and to the extent specified therein; or
(d) exempt from the operation of any provision of this
Act, subject to the conditions and to the extent specified therein.
(2) the Federal Government may, from time to time, by
notification in the official Gazette, make such amendment in the Second
Schedule by,---
(a) adding any clause or condition therein;
(b) omitting any clause or condition therein; and
(c) making any change in any clause or condition
therein,
as it may think fit, and all such amendments shall
have effect in respect of any such year beginning on any date before or after
the commencement of the financial year in which the said notification is
issued:---
Provided that the Federal Government shall place
before the National Assembly all amendments made by it in the Second Schedule
during a financial year.
Section
6. Exclusion of assets and debts outside Pakistan.- In computing the net
wealth of an individual or a Hindu undivided family not resident in Pakistan
during the year ending on the valuation date,---
(i) the value of the assets and debts located outside
(ii) the value of the assets in Pakistan represented
by any loans or debts owing to the assessee in any case where the interest, if
any, payable on such loans or debts is exempt from tax under a notification
issued under sub-section (1) of section 60 of the Income-tax Act, 1922, or
under the Second Schedule to the Income Tax Ordinance, 1979, shall not be taken
into account.
Explanation 1.-
An individual or a Hindu undivided family shall be
deemed to be not resident in Pakistan or resident but not ordinarily resident
in Pakistan during the year ending on the valuation date if in respect of that
year the individual or the Hindu undivided family, as the case may be, is not
resident in Pakistan or resident but not ordinarily resident in Pakistan within
the meaning of the Income-tax Act.
Section
7. Value of assets how to be determined.- (1) The value of any asset,
other than cash, for the purposes of this Act, shall be estimated by the Deputy
Commissioner in accordance with the rules made under section 46 of the Act.
(2) Notwithstanding anything contained in sub-section (1),---
(aa) Where the assessee is owner of agricultural land,
its value shall be determined in the following manner, namely:---
(i) The value of agricultural land shall, in terms of
rupees per acre, be the same as is equivalent to four hundred times the figure
of the produce index of such land as fixed, adopted or prescribed by the
Federal Land Commission.
(ii) The land for which produce index has not been
fixed, adopted or determined by the Federal Land Commission, the value of
agricultural land shall be the value as determined under clause (i) for similar
land in the areas which are nearest to such land.
Explanation.-
For the purposes of this clause, produce index unit (PIU) shall have the same
meaning as is assigned to it by the Land Reforms Act, 1977 (II of 1977).
7A. Reference to valuer.- (1) Subject to the provisions of this Act, the Deputy
Commissioner may require the valuer to determine the value of any property.
(2) For the purposes of determining the value of
property under subsection (1), the valuer may, with the prior approval of the
Inspecting Additional Commissioner of Wealth-tax, enter upon and inspect such property
at any reasonable time.
(3) Nothing contained in sub-section (1) shall be so
constructed as to make it obligatory on the Deputy Commissioner to make a
reference to a valuer or valuers, as the case may be, or to adopt the value as
determined by any valuer or valuers.
Section
8. Wealth-tax authorities.- (1) There
shall be the following classes of wealth-tax authorities for the purposes of
this Act, namely,---
(a) Central Board of Revenue;
(aa) Regional Commissioner of Wealth-tax;
(b) Director-General of Investigation and
Intelligence;
(bb) Director-General of Inspection; and
(bbb) Director-General of Training and Research;
(c) Commissioners of Wealth-tax;
(d) Additional Commissioners of Wealth-tax who may be
either Appellate Additional Commissioners of Wealth-tax or Inspecting Additional
Commissioners of Wealth-tax;
(e) Deputy Commissioners of Wealth Tax; and
(f) Wealth-tax Inspectors.
(2) Commissioners of Wealth-tax, Inspecting Additional
Commissioners of Wealth-tax, Deputy Commissioners of Wealth Tax and Wealth-tax
Inspectors shall be subordinate to the Regional Commissioners of Wealth-tax
within whose jurisdiction they perform their functions.
(3) Inspecting Additional Commissioners, Deputy
Commissioners and Wealth-tax Inspectors shall be subordinate to the
Commissioners within whose jurisdiction they perform their functions.
(4) Deputy Commissioners and Wealth-tax Inspectors
shall be subordinate to the Inspecting Additional Commissioners within whose
jurisdiction they perform their functions.
(5) Wealth-tax Inspectors shall be subordinate to the
Deputy Commissioners within whose jurisdiction they perform their functions.
Section
9. Appointment of Wealth-tax authorities, etc.- (1) The Central Board of Revenue may appoint as many
Regional Commissioners of Wealth-tax Director-General of Investigation and
Intelligence and Director-General of Training and Research, Commissioners of
Wealth-tax, Appellate and Inspecting Additional Commissioners of Wealth-tax,
Deputy Commissioners and other executive or ministerial officers and staff as
may be necessary.
(2) Subject to such orders or directions as may be
issued by the Central Board of Revenue from time to time, any other Wealth-tax
authority may appoint any Wealth-tax authority subordinate to it and such other
executive or ministerial officers and staff, as may be necessary.
(3) The Central Board of Revenue may appoint a
sufficient number of qualified persons to act as valuer for the purposes of
this Act and shall fix a scale of charges for the remuneration of such persons.
(4) All appointments under this Act shall be subject
to the rules and orders of the Federal Government regulating the terms and conditions
of service of persons in public services and posts.
Section
10. Jurisdiction of Wealth-tax authorities.- (1) Subject to the provisions of this Act.
(a) the Regional Commissioners and the
Director-General of Investigation and Intelligence and Director-General of
Training and Research shall perform such functions as may be assigned to them by
the Central Board of Revenue;
(b) the Commissioners and the Appellate Additional
Commissioners shall perform their functions in respect of such persons or classes
of persons or such areas as the Central Board of Revenue may direct; and the
Central Board of Revenue may, by general or special order in writing, direct
that the powers conferred on the Appellate Additional Commissioner by or under
this Act shall, in respect of appeals relating to specified cases or classes of
cases or specified persons, or classes of persons, be exercised by the
Commissioners and, for the purposes of any proceedings in respect of such cases
or persons, references in this Act or in any rules made thereunder to “Appellate
Additional Commissioners” shall be deemed to be references to “Commissioners”:---
Provided that the Central Board of Revenue may, by
general or special order in writing, direct that the Jurisdiction of the
Commissioners exercising the powers of an Appellate Additional Commissioners
shall be determined by the Regional Commissioner:---
Provided further that the Regional Commissioner may
transfer jurisdiction in respect of cases or persons from one Commissioner
subordinate to him to another;
(c) the Inspecting Additional Commissioners and the
Deputy Commissioner shall perform their functions in respect of such persons or
classes of persons or such areas as the Commissioners, to whom they are
subordinate, may direct; and the Commissioner may, with the prior approval of
the Central Board of Revenue, by general or special order in writing direct
that the powers conferred on the Deputy Commissioner and the Inspecting
Additional Commissioner by or under this Act shall, in respect of all or any
proceedings relating to specified cases or specified persons or classes of
persons, be exercised by the Inspecting, Additional Commissioner and the
Commissioner, respectively, and, for the purposes of any proceedings in respect
of such cases or persons, references in this Act or in any rules made
thereunder to “Deputy Commissioner” and “Inspecting Additional Commissioner”,
shall be deemed to be references to “Inspecting Additional Commissioner” and “Commissioner”,
respectively; and
(d) the Wealth-tax Inspectors shall perform such
functions as may be assigned to them by the wealth-tax authority under whom
they are appointed to work.
Explanation.- The power to confer jurisdiction under this sub-section shall include
the power to transfer jurisdiction from one wealth tax authority to another.
(2) Where any directions issued under sub-section (1)
have assigned to two more wealth-tax authorities the same functions or
functions in respect of the same persons or classes of persons or the same
area, they shall perform their functions in accordance with such orders as the
Central Board of Revenue, or any other authority to whom they are subordinate,
may make for the allocation of functions and the distribution of the work to be
performed.
(3) Within the area assigned to him, the Deputy
Commissioner shall have jurisdiction:---
(a) in respect of any person carrying on business or
profession, if the place of business or profession is situated within such
area, or where the business or profession is carried on in more places than
one, if the principal place of the business or profession is situated within
such area; and
(b) in respect of any other person, if he resides
within the area.
(4) Where a question arises as to whether a Wealth-tax
Officer has jurisdiction to assess any person, the question shall be determined
by the Commissioner, or where the question is one relating to the jurisdiction
of different Commissioners, by the Regional Commissioner or Regional
Commissioners concerned and, if they are not in agreement, by the Central Board
of Revenue.
(5) No person shall be entitled to call in question
the jurisdiction of a Wealth-tax Officer after he has made the return of total
income or, where he has not made such return, after the time allowed by any
notice served on him for making such return has expired.
(6) Notwithstanding anything contained in this
section, every Wealth-tax Officer shall have all the powers conferred by, or
under, this Act on a Wealth-tax Officer in respect of any assets owned or
deemed, under any provision of this Act, to belong to an assessee within his
jurisdiction.
Section
11. Exercise of jurisdiction by a successor.- Whenever, in respect of any proceedings under this
Act, a wealth-tax authority is succeeded by another, the wealth-tax authority
so succeeding may continue any proceedings from the stage at which it was left
by his predecessor.
Section
12. Guidance to Wealth-tax Officer.- In
the course of any proceedings under this Act, the Wealth-tax Officer may be
assisted, guided or instructed by any other wealth-tax authority to whom he is
subordinate or any other person authorised in this behalf by the Central Board
of Revenue.
Section
13. All officers to follow the orders of the Central Board of Revenue.- All officers and persons, employed in the execution of
this Act, shall observe and follow the orders instructions and directions of
the Central Board of Revenue;
Provided that no such orders, instructions or directions shall be given so as
to interfere with the discretion of the Appellate Assistant Commissioner or of
the Commissioner on whom powers of the former are conferred under clause (b) of
sub-section (1) of section 10, in the exercise of their appellate functions or
any valuer in the exercise of his functions under this Act.
13A. Collection of tax at source in case of motor
vehicles and rented property.- (1)
any person responsible for the collection of motor vehicle tax shall, at the
time of collecting the said tax, collect wealth tax in respect of motor
vehicles at the rates specified in the First Schedule:---
Provided that where the motor vehicle tax is collected
in instalments, wealth tax may be collected in the like manner:---
Provided further that nothing contained in this
section shall apply in respect of any assessment year commencing on or after
the first day of July, 2001.
(2) Any sum collected, or purported to be collected,
under this section shall be,---
(a) treated as payment of a tax on, behalf of the
assessee; and
(b) paid to the credit of the Federal Government within
such period and in the manner as may be prescribed.
(3) For the purpose of this section,---
(a) “Person responsible” means the prescribed person
and includes the principal officer of the Department, agency or Authority
entrusted with the function of collection of tax; and
(b) any sum collected under this section shall be
deemed, to be in respect of net wealth chargeable to tax under this Act.
13B. Certificate of collection of tax.- Every person collecting tax under section 13A shall,
at the time of the collection of the tax, furnish to the person from whom such
collection is made, a certificate of such collection and specify such other
particulars as may be prescribed.
13C. Liability of person failing to collect or pay
tax.-
Where a person responsible to collect tax fails, or
having collected, fails to pay the tax as required under section 13A, he shall,
without prejudice to any other liability which he may incur under this Act, be
deemed to be an assessee in default in respect of such tax.
13D. Advance payment of tax.-
(1) Where the net wealth of any assessee for the
latest assessment year, in respect of which tax payable by him has been
determined under sections 15A, 16, or 17, is not less than one million and five
hundred thousand rupees, he shall pay, by way of advance tax, on or before the
fifteenth day of November and the fifteenth day of May, in each financial year,
an amount equal to one-half of the full amount of wealth tax so determined to
be payable in respect of that assessment year (as reduced by tax already paid
by way of advance tax or otherwise), in the said financial year.
(2) A person liable to pay tax under section 14C shall
pay, by way of advance tax, on or before the fifteenth day of November and the
fifteenth day of May, in each financial year, an amount equal to one half of
the full amount of wealth tax payable under the said section 14C in the said
financial years.
(3) Any sum paid under sub-section (1) shall be
treated as an advance payment of tax in respect of the assessment year commencing
on the first day of July next following the financial year in which it is paid
and it shall be adjusted in computing tax payable by the assessee for the said
assessment year.
(4) Advance tax under this section shall not be
payable in the financial year commencing on or after the first day of July,
2000.
Section
14. Return of Wealth.-
(1) Every person,---
(a) whose net wealth on the valuation date was of such
amount as to render him liable to wealth-tax under this Act, or
(b) who is liable to furnish, under the Income Tax
Ordinance, 1979 (XXXI of 1979), a return of income or a certificate or
statement in lieu thereof or to whom the Ordinance apply except who is not
required to file a return under section 80B or a person whose declared income
for the relevant year or the last declared or assessed income is less than two
hundred thousand rupees, or a firm or an association of persons or a body of
individuals, whether incorporated or not or a company not otherwise chargeable
to tax under this Act; or
(c) who owns in any urban area,---
(i) residential plot or house with land area of 500
sq. yards or more; or
(ii) flat or apartment with covered area of 2000 sq.
feet or more; or
(d) who owns,---
(i) residential plot or house (including covered as
well as any open area appurtenant thereto) measuring 1000 square yards or more;
or
(ii) apartment or flat with covered area of 2500
square feet or more; and
(iii) any motor vehicle (not plying for hire) with
engine capacity of 1600 cubic centimetres or more;
Provided that nothing contained in this clause shall
apply to widows; orphans below the age of twenty five years; pensioners;
non-resident Pakistani and disabled persons shall, by the dates or the period
specified in sub-section (1A), furnish to the Deputy Commissioner of Wealth Tax
a return in the prescribed form and verified in the prescribed manner setting
forth the particulars of his net wealth as on the valuation date.
Explanation 2, For the purposes of this section and sections 14C and 14D, the
expression “disabled person” means a person who, on account of injury, disease
or congenital deformity, is handicapped for undertaking any gainful profession
or employment in order to earn his livelihood, and includes a person who is
blind, deaf, physically handicapped or mentally retarded.
(1A) The return of net wealth under sub-section (1)
shall be furnished, for every corresponding assessment year, by every
person,---
(a) required to furnish such return on or before the
same date by which he is required to furnish a return of total income under
section 55 of the Income Tax Ordinance, 1979 (XXX1 of 1979):---
Provided that where such person is not liable to file
a return under the Income Tax Ordinance, 1979 (XXXI of 1979), return of net
wealth shall be furnished on or before the 30th day of September of the
corresponding assessment year:---
Proviso omitted which reads as follows:---
Provided further that where a portion of the net
wealth of an assessee comprises agricultural assets, the separate return
required to be filed in respect of such portion, shall be furnished on or
before 30th day of September of the corresponding assessment year.
Explanation.- For the purpose of this sub-section, the expression “return of total
income” shall include the certificate or statement of income filed in lieu of
such return.
(2) If the Deputy Commissioner is of the opinion
that,---
i) the net wealth of any person is of such an amount;
or
ii) the assets of any person are of such nature, as to
render him liable to wealth tax under this Act, then notwithstanding anything
contained in sub-section (1), he may serve a notice upon such person requiring
him to furnish within thirty days from the date of service of such notice, or
such longer or shorter period as may be specified in the notice, a return in
the prescribed form and verified in the prescribed manner and setting forth
such other particulars as may be required in respect of the net wealth or
assets of such person as on the valuation date mentioned in the notice.
(3) The Deputy Commissioner may, if he is satisfied
that it is necessary so to do, extend the date for the delivery of the return
under this section.
14A. Payment of tax on the basis of return.- Every person who is required under this Act to furnish
a return of wealth shall pay the tax payable, on the basis of such return, on
or before the date on which he is so required to furnish such return:---
Provided that where such person has paid any sum under
sub-section (1) of section 13D, the Deputy Commissioner shall adjust the said
sum against the tax payable under this section.
Explanation.-For the purpose of this section, the expression “tax payable” includes
the tax payable under section 14B.
14B. Minimum tax on ownership of certain assets.- (1) Notwithstanding anything contained in this Act,
every person who owns immovable assets in urban areas shall pay wealth tax at
the rates and in the manner specified as under:---
(i) Residential plots and houses,---
|
(a) |
with land areas less than 500 sq. yards |
Nil |
|
(b) |
with land area of 500 sq. yards and above |
Rs. 2,000 per annum |
|
(c) |
with land area of 1000 sq. yards and above. |
Rs. 5,000 per annum |
|
(d) |
with land area of 2000 sq. yards and above. |
Rs. 10,000 per annum |
|
(ii) |
Flats and apartments with covered area of 2000 sq.
feet and above. |
Rs. 2,000 per annum |
(2) The tax under this section shall be payable
alongwith return of wealth and shall be deemed to be the final discharge of tax
liability of the assessee in respect of such asset irrespective of his overall
tax liability under this Act:---
Provided that this provision shall,---
(i) apply only to assessment year 1996-97; and
(ii) not apply to any person who has either been
assessed to tax or filed return of wealth for any year prior to assessment year
1996-97.
14C. Tax on ownership of certain immovable assets.- (1) Notwithstanding anything contained in this Act,
every person who owns an immovable asset referred to in clause (d) of
sub-section (1) of section 14 shall pay wealth tax at the rates specified in
paragraph B of Part II of the First Schedule:---
Provided that nothing contained in this sub-section
shall apply to widows, orphans below the age of twenty-five years, pensioners
and disabled persons:---
Provided further that nothing contained in this
section shall apply in respect of any assessment year commencing on or after
the first day of July, 2001.
(b) The tax under this section payable by way of
advance tax in accordance with the provisions of sections 13A and 13D, shall be
deemed to be the minimum amount of tax payable under this section and where the
final tax liability determined under this Act exceeds the amount paid, if any,
under the aforesaid provisions, the amount so paid shall be adjustable against
the final tax liability of the assessee.
14D. Tax on owners of certain motors vehicles.- (1) Notwithstanding anything contained in this Act,
every person who owns a motor vehicle of engine capacity exceeding 1500 cubic
centimetres (not plying for hire) shall pay wealth tax at the rates, and in the
manner specified as under,---
|
Engine capacity |
Tax |
|
1500 cc to 2000 cc |
Rs. 10,000 per annum |
|
2001 cc and above |
Rs. 20,000 per annum |
Provided that no tax shall be payable under this
section by any person who owns a motor vehicle manufactured more than seven
years earlier than the year in which payment of motor vehicles tax is made:---
Provided further that widows; orphans below the age of
twenty five years; pensioners; and such disabled persons as own vehicles under
a scheme for duty free import of motor vehicles shall, in respect. of such
vehicles, be exempt from payment of tax under this section:---
Provided further that nothing contained in this
section shall apply in respect of any assessment year commencing on or after
the first day of July, 2001.
(2) The tax under this section shall be payable
alongwith motor vehicles tax at the time of payment of that tax at the rates
specified in subsection (1) and shall be treated as an advance payment of tax
in respect of the assessment year commencing on the first day of July next
following the finance year in which it is paid and it shall be adjusted in
computing tax payable by the assessee for the said assessment year.
Section
15. Return after due date and amendment of return.- If any person has not furnished a return within the
time allowed under section 14, or having furnished a return under that section
discovers any omission or a wrong statement therein, he may furnish a return or
a revised return, as the case may be, at any time before the assessment is
made.
15A. Provisional assessment.- (1) The Deputy Commissioner may, at any time after the
first day of July of the year for which assessment is to be made, proceed to
make, in a summary manner, a provisional assessment of the tax payable by the
assessee on the basis of the return filed by the assessee under section 14 or
section 15, as the case may be, or where no such return has been filed, the
last completed assessment (including a provisional assessment).
(2) After a regular assessment has been made, any
amount paid towards the provisional assessment made under sub-section (1) shall
be deemed to have been paid towards the regular assessment; and where the
amount paid towards the provisional assessment exceeds the amount payable under
the regular assessment, the excess shall be refunded to the assessee.
(3) Nothing done or suffered by reason, or in
consequence of any provisional assessment made under sub-section (1) shall
prejudice the determination, on merits, of any issue which may arise in the
course of the regular assessment.
(4) There shall be no right of appeal against a provisional assessment made
under sub-section (1).
Section
16. Assessment.- (1) If the Deputy
Commissioner is satisfied without requiring the presence of the assessee or
production by him of any evidence that a return made under section 14 or
section 15 is correct and complete, he shall assess the net wealth of the
assessee and determine the amount of tax payable by him or the amount
refundable to him on the basis of such return.
(2) If the Deputy Commissioner is not so satisfied, he
shall serve a notice on the assessee either to attend in person at his office
on a date to be specified in the notice or to produce or cause to be produced
on that date any evidence on which the assessee may rely in support of his
return.
(3) The Deputy Commissioner, after hearing such
evidence as the person may produce and such other evidence as he may require on
any specified points, and after taking into account all relevant materials
which Deputy Commissioner has gathered, shall by order in writing, assess the
net wealth of the assessee and determine the amount payable by him as tax or
the amount refundable to him.
(4) For the purpose of making an assessment under this
Act, the Deputy Commissioner may serve on any person who has made a return
under sub-section (1) of section 14 or upon whom a notice has been served under
sub-section (2) of that section, or who has made a return under section 15, a
notice requiring him to produce or cause to the produced on a date specified in
the notice such accounts, records or other documents as the Deputy Commissioner
may require.
(5) If any person fails to make a return in response
to any notice under sub-section (2) of section 14, or fails to comply with the
terms of any notice issued under sub-section (2) or sub-section (4), the Deputy
Commissioner, after taking into account all relevant material which he has
gathered, shall make the assessment to the best of his judgement and determine
the amount payable by the person as wealth-tax or the amount refundable to him
on the basis of such assessment.
Section
17. Wealth escaping assessment.- (1)
If the Deputy Commissioner,---
(a) has reason to believe that by reason of the
omission or failure on the part of the assessee to make a return of his net
wealth under section 14 for any assessment year or to disclose fully and truly
all material facts necessary for his assessment for that year, the net wealth
chargeable to tax has escaped assessment for that year, whether by reason of
under-assessment or assessment at too low a rate or otherwise; or
(b) has, in consequence of any information in his
possession, reason to believe, notwithstanding that there has been no such
omission or failure as is referred to in clause (a), that the net wealth
chargeable to tax has escaped assessment for any year, whether by reason of
under assessment or assessment at too low a rate or otherwise, he may, in cases
falling under clause (a), at any time within five years and in cases falling
under clause (b), at any time within four years of the end of that assessment
year, serve on the assessee a notice containing all or any of the requirements
which may be included in a notice under sub-section (2) of section 14, and may
proceed to assess or re-assess such net wealth, and the provisions of this Act,
shall so far as may be, apply as if the notice had issued under that
sub-section:---
Provided that no proceedings under this sub-section
shall be initiated unless definite information has come into the possession of
the Deputy Commissioner or he has obtained the previous approval of the
Inspecting Additional Commissioner of Wealth-tax in writing to do so.
(2) Nothing contained in this section limiting the
time within which any proceeding for assessment or re-assessment may be
commenced shall apply to an assessment or re-assessment to be made on such
person in consequence of or to give effect to any finding or direction
contained in an order under section 17B, 23, 24, 25, 26, 27 or 29:---
Provided that the provisions of this sub-section shall
not apply in any case where any such assessment or re-assessment relates to an
assessment year in respect of which an assessment or re-assessment could not
have been made at the time the order which was the subject matter of the
appeal, reference or revision, as the case may be, was made by reason of any
provision limiting the time within which any action for assessment or
re-assessment may be taken.
17A. Time limit for completion of assessment and
reassessment.- (1) No order of
assessment shall be made under section 16 at any time after the expiration of a
period of,---
(a) four years commencing on and from the first day of
July, 1981, or two years from the date of the filing of a return or a revised
return under section 15, whichever is later, where the assessment year is an
assessment year commencing before that date; or
(b) four years from the end of assessment year in
which the net wealth was first assessable, or two years from the date of the
furnishing of a return or a revised return under section 15, whichever is later,
where the assessment year is an assessment year commencing on or after the
first day of July, 1981.
(2) No order of assessment or re-assessment shall be
made under section 17,---
(a) where any proceeding for an assessment or
re-assessment is pending on the first day of July, 1981, at any time after the
expiration of period of four years commencing on and from that date; or
(b) where the assessment or re-assessment is to be
made in a case falling within clause (a) of a sub-section (1) of section 17 for
which a notice has been served under that sub-section on or after the first day
of July, 1981 at any time after the expiration of a period of, two years from
the end of the assessment year in which such notice was served; or
(c) Where the assessment or re-assessment is to be
made in a case falling within clause (b) of sub-section (1) of section 17 for
which a notice has been served under that sub-section on or after the first day
of July, 1981, after the expiration of a period of,---
(i) four years from the end of the assessment year in
which the net wealth was first assessable, or
(ii) two years from the date of service of such
notice, whichever period expires later.
(3) Notwithstanding anything contained in sub-sections
(1) and (2), an order of fresh assessment in pursuance of an order passed on or
after the first day of July, 1981, under section 23, section 24 or section 25,
setting aside or cancelling an assessment, may be made at any time before the
expiry of two years from the end of the financial year in which the order under
section 23 or section 24 is received by the Commissioner or, as the case may
be, the order under section 25 is passed by the Commissioner.
(4) The provisions of sub-sections (1) and (2) shall
not apply to the assessment or re-assessment made on the assessee or any other
person in consequence of, or to give effect to, any finding or direction
contained in an order under section 17B, 23, section 24, section 25 section 26,
section 27 or section 29 or in an order of any court in a proceeding otherwise
than by way of appeal under this Act, and such assessment or re-assessment may,
subject to the provisions of sub-section (3), be completed at any time.
Explanation 1:- In computing the period of limitation for the purposes of this
section the period during which the assessment proceeding is stayed by an order
or injunction of any court shall be excluded.
Explanation 2:-Where, by an order referred to in sub-section (4), any asset is
excluded from the net wealth of one person and held to be the asset of another
person, then, an assessment in respect of such asset on such other person
shall, for the purposes of sub-section (2) of section 17 and this section be
deemed to be one made in consequence of, or to give effect to, any finding or
direction contained in the said order.
17B. Powers of Inspecting Additional Commissioner to
revise Deputy Commissioner’s order.- (1)
The Inspecting Additional Commissioner may call for and examine the record of
any proceedings under this Act, and if he considers that any order passed
therein by the Deputy Commissioner is erroneous in so far as it is prejudicial
to the interests of revenue, he may, after giving the assessee an opportunity
of being heard and after making, or causing to be made, such enquiry as he deems
necessary, pass such order thereon as the circumstances of the case justify,
including an order enhancing or modifying the assessment, or cancelling the
assessment and directing a fresh assessment to be made.
(2) The provisions of sub-section (1) shall, in like
manner, apply,---
(a) where an appeal has been filed under section 23,
24, 27 and 29, against an order passed by the Deputy Commissioner; and
(b) where an appeal fl referred to in clause (a) has
been decided, in respect of any point or issue which was not the subject matter
of such appeal or reference.
(3) No order under sub-section (1) shall be made after
the expiry of four years from the date of the order sought to be revised.
Explanation.-
For the purposes of this section, an order prejudicial to the interests of
revenue shall include an order passed without lawful jurisdiction.
Section
18. Penalty for concealment.- (1) If
the Deputy Commissioner, Appellate Additional Commissioner, Commissioner or
Appellate Tribunal, in the course of any proceedings under this Act, is
satisfied that any person,---
(a) has without reasonable cause failed to furnish the
return of his net wealth which he is required to furnish under sub-section (1)
or sub-section (2) of section 14 or section 17 or has without reasonable cause
failed to furnish it within the time allowed and in the manner required; or
(b) has without reasonable cause failed to comply with
a notice under sub-section (2) or sub-section (4) of section 16; or
(c) has concealed the particulars of his assets or
deliberately furnished inaccurate particulars of his assets or debts;
he or it may, by order in writing, direct that such
person shall pay by way of penalty,---
(i) in the case referred to in clause (a),---
|
(A) |
for the period of default which does not exceed six
weeks |
|
Rs. 200 for each day of default. |
|
(B) |
for the next three weeks |
|
the amount calculated as at (A) above plus one
hundred rupees for each day of default thereafter and an amount equal to 25%
of the tax payable; |
|
(C) |
for the next three weeks |
|
the amount calculated as provided at (B) above plus
one hundred rupees for each day of default thereafter and an amount equal to
50% of the tax payable; |
|
(D) |
for the remaining period |
|
the amount calculated as provided at (C) above plus
one hundred rupees for each day of default thereafter and an amount equal to
the tax payable. |
(ii) in the case referred to in clause (b), in
addition to the amount of wealth-tax payable by him, a sum not exceeding the
amount of tax so payable; and
(iii) in the case referred to in clause (c), a sum not exceeding to and half
times but in no case less than the amount of tax which would have been avoided,
if the net wealth return made by such person had been accepted as correct.
(1A) If the Deputy Commissioner in the course of any
proceedings under this Act is satisfied that any person has not paid tax under
section 14A or has paid an amount which is less than the amount payable
thereunder, he may direct that such person shall pay by way of penalty a sum
not exceeding twenty five per cent of the whole or such portion of the tax as
the case may be, as was not paid.
(2) No order shall be made under sub-section (1) or
sub-section (1A) unless the person concerned has been given a reasonable
opportunity of being heard.
(3) No prosecution for an offence under this Act shall
be instituted in respect of the same facts in relation to which a penalty has
been imposed under this section.
(4) The Deputy Commissioner shall not impose any penalty under this section
without the previous approval of the Inspecting Additional Commissioner of
Wealth-tax.
Section
19. Tax of deceased person payable by legal representative.- (1) Where a person dies, his executor, administrator
or other legal representative shall be liable to pay out of the estate of the
deceased person, to the extent to which the estate is capable of meeting the
charge, the wealth-tax assessed as payable by such person, or any sum, which
would have been payable by him under this Act if he had not died.
(2) Where a person dies without having furnished a
return under the provisions of section 14 or after having furnished a return
which the Deputy Commissioner has reason to believe to be incorrect or
incomplete, the Deputy Commissioner may make an assessment of the net wealth of
such person and determine the wealth-tax payable by the person on the basis of
such assessment, and for this purpose may, by the issue of the appropriate
notice which would have had to be served upon the deceased person if he had
survived, require from the executor, administrator or other legal
representative of the deceased person any accounts, documents or other evidence
which might, under the provisions of section 16, have been required from the
deceased person.
(3) The provisions of sections 14, 14A, 15, 15A, 17
and 17A shall apply to an executor, administrator or other legal representative
as they apply to any person referred to in those sections.
19A. Dissolution of a firm, association of persons,
body of individuals and liquidation of companies.- Where a firm, an association of persons or a body of
individuals is dissolved or a company is liquidated or wound up, all the
provisions of this Act shall, so far as may be, apply in respect of wealth
assessable for the year or years ending before such dissolution, liquidation or
winding up, as the case may be, as if no such dissolution, liquidation or
winding up had taken place.
19B. Proceedings against companies under liquidation.-
Notwithstanding anything contained in
section 316 of the Companies Ordinance, 1984 (XLVII of 1984), leave of the
court shall not be required for proceeding with or commencing any proceeding
under this Act against a company is respect of which a winding up order has
been made or provisional liquidator appointed.
Section
20. Assessment after partition of a Hindu undivided family.- (1) Where, at the time of making an assessment, it is
brought to the notice of the Deputy Commissioner that a partition has taken
place among the members of a Hindu undivided family and the Deputy
Commissioner, after inquiry, is satisfied that the joint family property has
been partitioned as a whole among the various members or groups of members in
definite portions, he shall record an order to that effect and shall make
assessments on the net wealth of the undivided family as such for the
assessment year or years, including the year relevant to the previous year in
which the partition has taken place, if the partition has taken place on the
last day of the previous year and each member or group of members shall be liable
jointly and severally for the tax assessed on the net wealth of the joint
family as such.
(2) Where the Deputy Commissioner is not so satisfied,
he may, by order, declare that such family shall be deemed for the purposes of
this Act to continue to be a Hindu undivided family liable to be assessed as
such.
Section
21. Assessment when assets are held by courts of wards,
administrators-general etc.- (1) In the case of assets chargeable to tax
under this Act which are held by a court of wards or an administrator general
or an official trustee of any receiver or manager or any other person, by
whatever name called, appointed under any order of a court to manage property
on behalf of another, or any trustee appointed under a trust declared by a duly
executed instrument in writing, whether testamentary or otherwise (including a
trustee under a valid deed of wakf), the wealth-tax shall be levied upon and
recoverable from the court of wards, administrator-general official trustee,
receiver, manager or trustee, as the case may be, in the like manner and to the
same extent as it would be leviable upon and recoverable from the person on
whose behalf the assets are held, and the provisions of this Act shall apply
accordingly.
(2) Nothing contained in sub-section (1) shall prevent
either the direct assessment of the person on whose behalf the assets above
referred to are held, or the recovery from such person of the tax payable in
respect of such assets.
(3) Where the guardian or trustee of any person being
a minor, lunatic or idiot (all of which persons are hereinafter in this
sub-section included in the terms “beneficiary”) holds any assets on behalf of
such beneficiary, the tax under this Act shall be levied upon and recoverable
from such guardian or trustee, as the case may be in the like manner and to the
same extent as it would be leviable upon and recoverable from any such
beneficiary if of full age of sound mind and in direct ownership of such
assets.
(4) Notwithstanding anything contained in this
section, where the shares of the persons on whose behalf any such assets are
held are indeterminate or un-known, the wealth-tax may be levied upon and
recovered from the court of wards, administrator-general, official trustee,
receiver, manager or other person aforesaid as if the persons on whose behalf
the assets are held were an individual for the purposes of this Act.
Section
22. Assessment of persons residing outside Pakistan.- (1) Where the person liable to tax under this Act
resides outside
(2) Any person employed by or on behalf of a person
referred to in sub-section (1) or through whom such person is in the receipt of
any income, profits or gains or who is in possession or has custody of any
asset of such person and upon whom the Deputy Commissioner has caused a notice
to be served of his intention of treating him as the agent of such person shall,
for the purposes of sub-section (1), be deemed to be the agent of such
person:---
Provided that,---
(1) no person shall be deemed to be the agent of
another under this section unless he has had an opportunity of being heard by
the Deputy Commissioner as to his being treated as such, and
(2) no agent shall be liable to pay any amount by way
of Wealth-tax under sub-section (1) in excess of the amount belonging to the
person residing outside
Section
23. Appeal to the Appellate Additional Commissioner from orders of Deputy
Commissioner.- (1) Any assessee
objecting to an assessment made, or penalty imposed upon him, or denying his
liability to be assessed under this Act, or objecting to an order under
sub-section (2) of section 20 may, within thirty days of the date on which he
is served with the notice of demand or copy of order under sub-section (2) of
section 20 appeal to the Appellate Additional Commissioner against such
assessment, penalty or order, as the case may be, in the prescribed from and
verified in the prescribed manner and shall be accompanied by a fee of one
thousand rupees or ten per cent of the tax levied, whichever is less, provided
that where no tax is levied, a fee of one thousand rupees shall be paid:---
Provided that no appeal shall lie unless the
wealth-tax admitted to be due by the appellant has been paid.
(2) The Appellate Additional Commissioner may admit an
appeal after the expiration of the period referred to in sub-section (1) if he
is satisfied that the appellant had sufficient cause for not presenting the
appeal within that period.
(3) The Appellate Additional Commissioner may, after
giving the appellant a reasonable opportunity of being heard, pass such order
on the appeal as he may think fit and communicate the order passed by him to
the assessee and the Commissioner:---
Provided that an order of enhancement shall not be
made unless the appellant has been given a reasonable opportunity of showing
cause against such enhancement.
(4) When hearing an appeal, the Appellate Additional
Commissioner shall not admit any evidence which was not produced before the
Deputy Commissioner unless he is satisfied that the assessee was prevented by
sufficient cause from producing such evidence.
Section
24. Appeal to the Appellate Tribunal.- (1)
Any assessee objecting to an order passed by an Appellate Additional
Commissioner or an order made by an Inspecting Additional Commissioner, under
section 17B may appeal to the Appellate Tribunal within sixty days of the date
on which such order is communicated to him.
(2) The Commissioner may, if he is not satisfied as to
the correctness of any order passed by an Appellate Additional Commissioner,
direct the Deputy Commissioner to appeal to the Appellate Tribunal against such
order, and such appeal may be made within sixty days of the day on which the
order is communicated to the Commissioner.
(3) The Tribunal may admit an appeal after the expiry
of the sixty days referred to in sub-sections (1) and (2) if it is satisfied
that there was sufficient cause for not presenting it within that period.
(4) An appeal to the Appellate Tribunal shall be in
the prescribed form and shall be verified in the prescribed manner and shall, except
in the case of an appeal referred to in sub-section (2), be accompanied by a
fee of two thousand five hundred rupees or ten per cent of the tax levied,
whichever is less, provided that where no tax is levied, a fee of two thousand
five hundred rupees shall be paid.
(5) The Appellate Tribunal may, after giving both
parties to the appeal an opportunity of being heard, pass such orders thereon
as it thinks fit, and any such orders may include an order enhancing the
assessment or penalty:---
Provided that no order enhancing an assessment or
penalty shall be made unless the person affected thereby has been given a
reasonable opportunity of showing cause against such enhancement.
(6) Where the appellant objects to the valuation of
any property, the Appellate Tribunal may, and if the appellant so requires
shall, refer the question of the disputed value to the arbitration of two
valuers, one of whom shall be nominated by the appellant and the other by the
respondent, and the Tribunal shall, so far as that question is concerned, pass
its orders under sub-section (4) conformably to the decision of the valuers:---
Provided that if there is a difference of opinion
between the two valuers, the matter shall be referred to a third valuer
nominated by agreement, or failing agreement, by the Appellate Tribunal, and
the decision of that valuer on the question of valuation shall be final.
(7) The costs of any arbitration proceeding under
sub-section (6) shall be borne by the Central Government or the assessee, as
the case may be, at whose instance the question was referred to the valuers:---
Provided that where the assessee has been wholly or
partially successful in any reference made at his instance, the extent to which
the cost should be borne by the assessee shall be at the discretion of the
Appellate Tribunal.
(8) The valuers may, in disposing of any matter
referred to them for arbitration under sub-section (6) hold or cause to be held
such inquiry as they think fit, and after giving the appellant and the
respondent an opportunity of being heard, pass such orders thereon as they
think fit and shall send a copy of such order to the Appellate Tribunal.
(9) A copy of every order passed by the Appellate
Tribunal under this section shall be forwarded to the assessee and the Commissioner.
(10) Save as provided in section 27, any order passed
by the Appellate Tribunal on appeal shall be final.
(11) The provisions of sub-sections (5), (7) and (8)
of section 133 of the Income Tax Ordinance, 1979, shall apply to the Appellate
Tribunal in the discharge of its functions under this Act as they apply to it
in the discharge of its functions under the Income Tax Ordinance, 1979.
(12) All appeals which were pending before the
Appellate Assistant Commissioner of Wealth-tax before the Commencement of the
Finance Ordinance, 1971, shall stand transferred to the Appellate Tribunal and
shall be heard and disposed of by the Appellate Tribunal as if such appeals has
been made to it after the said Ordinance had come into force.
(13) Nothing contained in the Finance Ordinance, 1971
shall be deemed to affect the right of any person to make an appeal to the
Appellate Tribunal against an order passed before the commencement of that
Ordinance against which such appeal could be made; and every such appeal shall
be heard and disposed of by the Appellate Tribunal and in disposing of such
appeal the Appellate Tribunal shall follow, so far as may be, the same
procedure as it would have followed had the said Ordinance not come into force.
(14) Notwithstanding anything to the contrary
contained in this Act, all appeals made to the Appellate Tribunal before the
first day of July, 1974, shall be disposed of by the Appellate Tribunal as if
such appeals had been filed under this section and all the provisions of this Act
shall apply accordingly.
Section
25. Powers of Commissioner to revise orders of subordinate authorities.- (1) The Commissioner may, either of his own motion or
on application made by an assessee in this behalf, call for the record of any
proceeding under this Act in which an order has been passed by any authority
subordinate to him, and may make such inquiry, or cause such inquiry to be made
and, subject to the provisions of this Act, pass such order thereon, not being
an order prejudicial to the assessee, as the Commissioner thinks fit:---
Provided that the Commissioner shall not revise any
order under this sub-section in any case,---
(a) where an appeal against the order lies to the
Appellate Assistant Commissioner, the time within which such appeal can be made
has not expired or, where the appeal lies to the Appellate Tribunal, the
assessee has not waived his right of appeal;
(b) where the order is the subject of an appeal before
the Appellate Assistant Commissioner or the Appellate Tribunal;
(c) where the application is made by the assessee for
such revision, unless,---
(i) the application is accompanied by a fee of one
thousand rupees or ten per cent of the tax levied, whichever is the less, but
where no tax is levied, a fee of one thousand rupees shall be paid; and
(ii) the application is made within one year from the
date of the order sought to be revised or within such further period as the
Commissioner may think fit to allow on being satisfied that the assessee was
prevented by sufficient cause from making the application within that period;
and
(d) where the order is sought to be revised by the
Commissioner of his own motion, if such order is made more than one year
previously.
Explanation.-For the purposes of this sub-section,---
(a) the Appellate Additional Commissioner shall be
deemed to be an authority subordinate to the Central Board of Revenue;
(b) an order by the Commissioner declining to
interfere shall be deemed not to be an order prejudicial to the assessee;
(c) where, in pursuance of an order by the Central
Board of Revenue under clause (b) of sub-section (1) of section 10, a
Commissioner exercises the powers of an Appellate Additional Commissioner,
references to “Commissioner” shall be deemed to be references to “Central Board
of Revenue”; and
(d) where an order is passed under section 38B,
reference to “Commissioner” shall be deemed to be reference to “Regional
Commissioner”.
25A. Settlement of cases.- The provisions of Chapter XIIIA of the Income Tax
Ordinance, 1979 (XXXI of 1979), shall, mutatis mutandis, apply for settlement
of cases under this Act.
25B. Director-General of Inspection.- The provisions of Chapter XIIIB of the Income Tax
Ordinance, 1979 (XXXI of 1979), shall, mutatis mutandis, apply for inspection,
investigation, audit and other related matters in cases under this Act.
Section
Section 26 omitted by
Finance Act, 1992 w.e.f. assessment year 1992-93.
Section
27. Appeal to High Court,---
(1) An appeal shall lie to the High Court in respect
of any question of law arising out of an order under section 24.
(2) The appeal under this section shall be filed
within sixty days of the date upon which an assessee or the Commissioner is
served with notice of an order under section 24.
(3) Where an appeal under sub-section (1) is filed by
the assessee, it shall be accompanied by a fee of one hundred rupees.
(4) An appeal filed under this section shall be heard
by a Bench of not less than two Judges of the High Court.
(5) The High Court upon the hearing of an appeal under
this section shall decide the question of law raised therein and shall deliver
its judgement thereon containing the grounds on which such judgement is founded
and shall send a copy of such judgement under the seal of the Court and the
signature of the Registrar to the Appellate Tribunal, which shall pass such
orders as are necessary to dispose of the case comfortably to such judgement.
(6) Subject to sub-section (7), notwithstanding that
an appeal has been filed under this section, tax shall, unless recovery thereof
has been stayed by the High Court, be payable in accordance with the assessment
made in the case as modified by the order of the Appellate Additional
Commissioner or, as the case may be, the Appellate Tribunal.
(7) Where recovery of tax has been stayed by the High
Court by an order, such order shall cease to have effect on the expiration of a
period of six months following the day on which it is made, unless the appeal
is decided, or such order is withdrawn, by the High Court earlier.
(8) The costs of the appeal shall be in the discretion
of the Court.
Section
Section 28 omitted by
Finance Act, 1997.
Section
29. Appeal to Supreme Court.- An
appeal shall lie to the Supreme Court from any judgement of the High Court
delivered under section 27 in accordance with the provisions of Article 185 of
the Constitution.
Section
30. Notice of demand.- When any tax
is due in consequence of any order passed under this Act, the Wealth-tax
Officer shall serve upon the assessee or other person liable to pay such tax a
notice of demand in the prescribed form specifying the sum so payable and the
time within which it shall be payable.
Section
31. Recovery of tax .- (1) Any amount
specified as payable in a notice of demand issued under Section 30 shall be
paid within the time, at the place, and to the person mentioned in the notice,
or if no time is so mentioned, then on or before the first day of the second
month following the date of service of the notice, and any assessee failing so
to pay shall be deemed to be in default.
(2) Where an assessee has been assessed in respect of
assets located in a country outside Pakistan the laws of which prohibit or
restrict the remittance of money to Pakistan, the Wealth-tax Officer shall not
treat the assessee as in default in respect of that part of the tax which is
attributable to the assets in that country, and shall continue to treat the
assessee as not in default in respect of that part of the tax until the
prohibition or restriction of remittance is removed.
(3) Notwithstanding anything contained in this section, where an assessee has
presented an appeal under section 23, the Wealth-tax Officer may in his
discretion treat the assessee as not being in default as long as such appeal is
undisposed of.
31A. Recovery of tax in the case of firms, association
of persons, bodies of individuals, whether incorporated or not, and companies.-
(1) Notwithstanding anything
contained in other statutes, where any tax payable by a firm, an association of
persons, a body of individuals, whether incorporated or not, or a company
(including a firm, an association of persons, a body of individuals, whether
incorporated or not, or a company which are wound up or are in the process of
winding up) in respect of any year cannot be recovered, every person who is, or
was at any time during the year ending on the valuation date relevant to that
year, a partner, a member, a director or a major share holder, as the case may
be, of such bodies shall be jointly and severally liable for the payment of
such tax:---
Provided that a major shareholder is one who owns not
less than 10 per cent of paid up capital at any time during the year:---
Provided further that any person who makes the payment
under this section shall be entitled to recover the amount so paid by him from
the body on whose behalf it is paid or from the other partners, members,
directors, shareholders, as the case may be, of that body.
(2) No proceedings under sub-section (1) shall be
commenced except with the prior approval in writing of the Commissioner.
31B. Additional Wealth-tax.- (1) Where an assessee,---
(a) fails to pay the tax due from him on the basis of
return or has paid an amount less than the amount so payable; or
(b) has either failed to pay any tax under section 14A
or the tax paid under the said section is less than 80 per cent of the tax
payable as a result of completion of the relevant assessment under section 16,
he shall, without prejudice to his liability under any other provisions of law,
be liable to pay an additional amount of tax equal to fifteen per cent per
annum,---
(i) in cases referred to in clause (a), of the whole
or such portion of the amount as was not paid from the date it first became
payable to the date of payment; and
(ii) in cases referred to in clause (b), of the amount
by which tax paid under section 14A falls short of 80 per cent of the tax
payable under section 16, from the date of payment of the tax under section 14A
to the date of completion of assessment under section 16, and where no tax has
been paid under section 14A, of the amount equal to eighty per cent of the tax
payable under section 16, from the date the tax became first payable under
section 14Ato the date of completion of assessment under section 16.
(2) Where an assessee fails to pay the amount of
wealth-tax due from him within the time specified in the notice of demand
issued under section30 or the time laid down in sub-section (1) of section 31,
he shall, without prejudice to his liability under any other provision of the
law, be liable to pay an additional amount of wealth-tax equal to fifteen per
cent per annum of the amount of wealth-tax due from him from the first day of
July, 1965 or such subsequent date as may be specified in the notice of demand
or be applicable under sub-section (1) of section 31 (hereinafter referred to
as the said date) up to the date of its payment:---
Provided that where, at the request of the assessee,
the wealth-tax is allowed to be paid in instalments, such additional amount of
tax shall be payable in respect of each instalment from the said date up to the
date when it is paid:---
Provided further that where, upon an appeal under
section 23 or section 24 or section 26, or a revision under section 25, an
appeal to the High Court under section 27, or an appeal to the Supreme Court
under section 29, the amount of wealth-tax on which the additional amount of
wealth-tax was payable under this section is reduced, such additional amount
shall be reduced accordingly and the additional amount paid in excess, if any,
shall be refunded together with the amount of wealth-tax that is refundable:---
Provided that where in cases referred to in clause
(ii), the assessment is not made before the end of the assessment year next
following the year in which the return was filed, no additional, tax shall be
payable after the end of the said assessment year.
31BB. Charge of additional tax for failure to collect
and pay tax.- Where any person fails
to collect, or having collected fails to pay any tax, as required under section
13A, such person shall, without prejudice to any other liability which he may
incur, be liable to pay additional tax at the rate of fifteen per cent per
annum on the amount not paid for the period commencing from the date on which
he was required to pay such tax to the date of the payment thereof.
31BBB. Charge of additional tax for failure to pay
advance tax.- Where an assessee who
is required to pay tax under section 13D,---
(a) fails to pay any instalment; or
(b) fails to pay any instalment on or before the
specified date; or
(c) fails to pay the full amount payable by him, he
shall, without prejudice to any other liability which he may incur under this
Act, be liable to pay additional tax at the rate of twenty-four per cent per
annum on the amount not paid, and such additional tax shall be calculated from
the date on which such amount was payable to the date on which it is paid or
the thirtieth day of September of the financial year next following, whichever
is earlier.
31C. Additional payment for delayed refunds.- Where any refund due to an assessee is not made within
three months of the date on which it became due (hereinafter referred to as the
said date), there shall be paid to the assessee, in addition to the amount of
refund due to him, a further sum equal to five per cent per annum of the amount
of refund from the date next following the expiration of three months from the
said date to the date on which the refund is made.
31D. Power to withhold refund in certain cases.- Where an order giving rise to a refund is the subject
matter of an appeal or further proceedings under this Act, the Deputy
Commissioner may, the prior approval of the Commissioner, withhold the refund
till such time as the Commissioner may determine.
31E. Adjustment of refund against tax.- Where, under the provisions of this Act, the repealed
Estate Duty Act, 1950 (X of 1950), the Gift-Tax Act, 1963 (XIV of 1963), the
Income Tax Ordinance, 1979 (XXXI of 1979), the Capital Value Tax levied under
the Finance Act, 1989 (V of 1989) any refund is due to any person, the amount
to be refunded or any part thereof, may be set off against the tax payable by
that person under this Act.
Section
32. Mode of recovery.- The provisions
of sections 91, 92, 93, 94 and 95 of the Income Tax Ordinance, 1979, shall
apply as if the said provisions were provisions of this Act and referred to
wealth-tax and sums imposed by way of penalty under this Act instead of to
income-tax and sums imposed by way of penalty under that Act, and to Deputy
Commissioner and Commissioner of Wealth-tax instead of to Deputy Commissioner
of Income Tax and Commissioner of Income-tax.
Section
33. Liability of transferees of properties in certain cases.- (1) Where by reason of the provisions contained in
section 4, the value of any assets transferred to any of the persons mentioned
in that section has to be included in the net wealth of an individual, the
person in whose name such assets stand shall, notwithstanding anything
contained in any law to the contrary, be liable, on the service of a notice of
demand by the Deputy Commissioner in this behalf, to pay that portion of the
tax assessed on the assessee as is attributable to the value of the asset standing
in his name as aforesaid:---
Provided that where any asset is held jointly by more
than one person, they shall be jointly and severally liable to pay the tax as
is attributable to the value of the asset so jointly held.
(2) Where any such person as is referred to in
sub-section (1) defaults in making payment of any tax demanded from him, he
shall be deemed to be an assessee in default in respect of such sum, and all
the provisions of this Act relating to recovery shall apply accordingly.
Section
Section 34 omitted by
Finance Act, 1977.
Section
35. Rectification of mistakes.- At
any time within four years from the date of any order passed by him, or it, the
Commissioner, the Wealth tax Officer, the Appellate Assistant Commissioner and
the Appellate Tribunal may, on his, or its, own motion rectify any mistake
apparent from the record and shall, within a like period, rectify any such
mistake which has been brought to the notice of the Commissioner, the
Wealth-tax Officer, the Appellate Assistant Commissioner or the Appellate
Tribunal, as the case may be, by an assessee:---
Provided that no such rectification shall be made
which has the effect of enhancing the assessment unless the assessee has been
given a reasonable opportunity of being heard in the matter.
Section
36. Penalty and prosecution.- (1)
Where any person, without reasonable cause,---
(a) fails to furnish in due time any return mentioned
in section 14; or
(aa) fails to comply with the provisions of section
13A or section 13D; or
(b) fails to comply with the requirements of any
notice served upon him under sub-section (2) or sub-section (4) or section 16;
or
(c) fails to furnish within the time specified any
statement or information which such person is bound to furnish to the Wealth tax
Officer under section 38; or
(d) conceals his assets or deliberately furnishes
inaccurate particulars of his assets or debts, he shall be punishable,---
(i) in the cases referred to in clause (a), clause
(aa), clause (b) or clause (c) with imprisonment for a term which may extend to
one year or with fine or with both; and
(ii) in the case referred to in clause (d), with
imprisonment for a term which may extend to five years or with fine or with
both.
(2) If a person makes a statement in a verification
mentioned in section 14 or section 23 or section 24 or section 26 which is
false, and which he either knows or believes to be false, or does not believe
to be true, he shall be punishable with simple imprisonment which may extend to
one year, or with fine which may extend to one thousand rupees, or with both.
(3) A person shall not be proceeded against for an
offence under subsection (2) except at the instance of the Commissioner.
(4) The Commissioner may either before or after the
institution of proceedings compound any such offence.
(5) Notwithstanding anything contained in the Code of
Criminal Procedure, 1898 (V of 1898), or in any other law for the time being in
force, an offence punishable under this section shall be tried exclusively by a
special Judge appointed by the Federal Government under the Pakistan Criminal
Law Amendment Act, 1958 (XL of 1958), as if such an offence were an offence specified
in the Schedule to that Act.
(6) A special Judge shall take congnizance of and have
jurisdiction to try, and offence tribale under sub-section (5) only upon a
complaint in writing made, after complying with the requirement of sub-section
(3), by a Wealth-tax Officer,---
(a) who is competent to make assessment under this Act
in the case to which the offence alleged to have been committed relates, and
(b) whose office is situated within the territorial
limits of the jurisdiction of such Special Judge.
(7) Every case relating to an offence triable under
sub-section (5) and pending, immediately before the commencement of the Finance
Act, 1973, in any court for trial shall stand transferred to the Special Judge
to whom a complaint in respect of the offence could have been made under
sub-section (6); and a case so transferred to a Special Judge shall be tried by
him as if it were a case in which a complaint had been made in accordance with
sub-section (6) by the competent Wealth-tax Officer.
36A. Liability for prosecution in the case of company,
etc.- Where any offence referred to
in this Act has been committed by a company, or an association of persons or a
body of individuals, whether incorporated or not, or a firm or a Hindu
undivided family, every person who, at the time the offence was committed, was
the principal officer thereof, or was acting, or purporting to act, in such
capacity, or a member of the association of persons or a body of individuals,
or a partner in the firm, or the manager or a male adult member of the family,
he shall, notwithstanding anything contained in any other law for the time
being in force, be deemed to be guilty of such offence and all the provisions
of this Act shall apply accordingly.
Section
37. Power to take evidence on oath, etc.- (1) The Commissioner, the Wealth-tax Officer, the Tax Recovery Officer,
the Appellate Assistant Commissioner and the Appellate Tribunal shall, for the
purposes of this Act, have the same powers as are vested in a court under the
Code of Civil Procedure, 1908, when trying a suit in respect of the following
matters, namely:---
(a) enforcing the attendance of any person and
examining him on oath;
(b) requiring the discovery and production of
documents;
(c) receiving evidence on affidavit;
(d) issuing commissions for the examination of
witnesses;
and any proceeding before the Commissioner, the
Wealth-tax Officer, the Tax Recovery Officer, the Appellate Assistant
Commissioner or the Appellate Tribunal shall be deemed to be a judicial
proceeding within the meaning of sections 193 and 228 of the Pakistan Penal
Code.
(2) Where a person to whom a summon is issued under
sub-section (1) either to attend to give evidence or to produce accounts or
documents at the place and time specified in such summon, fails to do so
without any reasonable cause, the authority issuing such summons may without
prejudice to the provisions of any other law for the time being in force,
impose upon him such fine not exceeding one thousand rupees as it thinks fit,
and the fine so imposed may be recovered in the manner provided in Chapter VII.
Section
38. Information, returns and statements.- Where, for the purposes of determining the wealth-tax payable by any
person, it appears necessary for the Wealth-tax Officer to obtain any statement
or information from any individual, company, firm, Hindu undivided family or
other person, the Wealth Tax Officer may serve a notice requiring such
individual, company, firm, Hindu undivided family or other person, on or before
a date to be therein specified, to furnish such statement or information on the
points specified in the notice, and the individual or the principal officer
concerned or the manager of the Hindu undivided family, as the case may be,
shall, notwithstanding anything in any law to the contrary, be bound to furnish
such statement or information to the Wealth-tax Officer:
Provided that no legal practitioner shall be bound to furnish any statement or
information under this section based on any professional communications made to
him otherwise than as permitted by section 126 of the Evidence Act, 1872.
38A. Power of survey.- Notwithstanding anything contained in any other
provisions of this Act and subject to such directions as may, from time to
time, be issued by the Central Board of Revenue in this behalf, the
Commissioner, the Inspecting Assistant Commissioner, the Wealth-tax Officer or
a Wealth-tax Inspector may enter any premises within the area assigned to him
for the purposes of making a survey of properties liable to tax under this Act
and make such enquiries as may be necessary.
38B. Penalty for obstruction.- Where any person obstructs any wealth tax authority in
the discharge of his functions under this Act, the Commissioner may impose on
such person a penalty not exceeding ten thousand rupees.
Section
Section 39 omitted by
Finance Ordinance, 1981.
Section
40. Computation of period of limitation.- In computing the period of limitation prescribed for an appeal under
this Act or for an application under section 27, the day on which the order
complained of was made and the time requisite for obtaining a copy of such
order shall be excluded.
Section
41. Service of notice.- A notice,
order or requisition (hereinafter referred to as ‘notice’) under this Act may
be served on the person therein named either by post or in the manner provided
for service of a summon issued by a court under the Code of Civil Procedure,
1908 (V of 1908).
(2) Any such notice may be addressed,---
(a) in the case of a firm or a Hindu undivided family,
to any member of the firm or to the manager or any adult male member of family;
(b) in the case of a local authority, a company or an
association of persons, to the principal officer thereof; and
(c) in the case of any other person (not being an
individual), to the person who manages or controls its affairs.
(3) Where partition of any Hindu undivided family has
taken place, any such notice may be served on the person who was the last
manager of the family, or if such person is dead, on all adult male persons who
were members of the family immediately before the partition.
(4) Where a firm or other association of persons is
dissolved, any such notice may be served on any person who was a member of the
firm or the association, as the case may be, immediately before such dissolution.
(5) The validity of any notice issued under this Act,
or the validity of service of any such notice, shall not be called in question
after the return in response to such notice has been furnished or compliance
thereto has been made.
Section
42. Prohibition of disclosure of information.- (1) Subject to the provisions contained in sub-section
(2), the provisions of section 122 and section 150 of the Income Tax Ordinance,
1979, shall apply to all accounts or in relation to statements, documents, evidence
or affidavits given, produced or obtained in connection with or in the course
of any proceeding under this Act as they apply to or in relation to similar particulars
under that Ordinance.
(2) Nothing contained in section 122 and section 150
of the Income Tax Ordinance, 1979, shall apply to be disclosure of any such
particulars as are referred to in sub-section (1) to any person acting in the
execution of this Act or the Income-tax Act, 1922, or the Income Tax Ordinance,
1979, or the Estate Duty Act, 1950 or the Gift-tax Act, 1963 where it is
necessary or desirable to disclose the same to him for the purpose of this Act
or any of the other Acts aforesaid.
Section
43. Bar of jurisdiction.- No suit
shall lie in any civil court to set aside or modify any assessment made under
this Act, and no prosecution, suit or other legal proceeding shall lie against
any officer of the Government for anything in good faith done or intended to be
done under this Act.
Section
44. Appearance before wealth-tax authorities by authorised representatives.- Any assessee who is entitled to or is required to
attend before any wealth-tax authority or the Appellate Tribunal in connection
with any proceeding or inquiry under this Act, except where he is required
under this Act to attend in person, may attend by a person authorised by him in
writing in this behalf, being a relative of, or a person regularly employed by,
the assessee or a legal practitioner or a chartered accountant or any other
person having such qualifications as may be prescribed.
Explanation. -For the purposes of this section,---
(a) the expression, “a person regularly employed by
the assessee” includes any officer of a Scheduled Bank with which the assessee
maintains a current account or has other regular dealings;
(b) “chartered accountant” means a chartered
accountant as defined in the Chartered Accountants Ordinance, 1961 (X of 1961).
44A. Officers to assist wealth-tax authorities.- It shall be the duty of all officers of the Police,
Customs, Central Excise and Provincial Excise and Taxation Departments to
render to the officers and other persons employed in the execution of this Act
such assistance in its execution as may be required of them.
Section
45. Act not to apply in certain cases.- Except
for the purposes of section 38, the provisions of this Act shall not apply
to,---
(a) a banking company, as defined in the Banking
Tribunals Ordinance, 1984;
(b) an insurer within the meaning of the Insurance
Act, 1938;
(c) any company established with the object of financing,
whether by way of making loans or advances to, or subscribing to the capital
of, private industrial enterprises in Pakistan, in any case where the Federal
Government has made or agreed to make to the company a special advance for the
purpose or has guaranteed or agreed to guarantee the payment of moneys borrowed
by the company from any institution outside Pakistan.
45A. Certain mistakes not to vitiate assessment, etc.-
No assessment order, notice, warrant
or other document made, issued or executed or purporting to be made, issued or
executed under this Act shall be void or otherwise inoperative merely for want
of form, or for a mistake, defect or omission therein, if such want of form, or
mistake, defect or omission is not of a substantial nature prejudicially
affecting an assessee.
Section
46. Power to make rules.- (1) The
Board may, by notification in the official Gazette, make rules for carrying out
the purposes of this Act.
(2) In particular, and without prejudice to the
generality of the foregoing power, rules made under this section may provide
for,---
(a) the manner in which the market value of any asset
may be determined;
(b) the form in which returns under this Act shall be
made and the manner in which they shall be verified;
(c) the form in which appeals and applications under
this Act may be made, and the manner in which they shall be verified;
(d) the form of any notice of demand under this Act;
(e) the areas for which lists of valuers may be drawn
up;
(f) any other matter which has to be, or may be,
prescribed for the purposes of this Act.
(3) The powers to make rules conferred by this section
shall on the first occasion of the exercise thereof include the power to give
retrospective effect to the rules or any of them from a date not earlier than
the date of commencement of this Act.
The First Schedule
(see section 3 and 13A)
PART-I
RATES OF WEALTH TAX
A. In the case of every individual, Hindu undivided
family, firm, association of persons or body of individuals, whether
incorporated or not and a company, the Wealth Tax shall be charged on the net
wealth at the following rates:---
|
(i) |
on the first Rs. 500,000 of net wealth |
0.5% |
|
(ii) |
on the next Rs. 500,000 of net wealth |
1.0% |
|
(iii) |
on the next Rs. 500,000 of net wealth |
1.5% |
|
(iv) |
on the next Rs. 500,000 of net wealth |
2.0% |
|
(v) |
on the balance net wealth |
2.5% |
Provided that,---
(a) no tax shall be payable by an assessee on that
portion of his net wealth which does not exceed Rs. 2,500,000;
(b) if any assessee avails of an option under clause
(12) of Part I of the Second Schedule to have one house owned and occupied for
the purposes of his own residence excluded from his assets, proviso (a) shall
not apply;
(c) the tax payable by an assessee shall be set off
against unadjusted capital value tax paid by him, if any, during the year
ending on the valuation date relevant to the assessment year to which the tax
payable relates and in the two years immediately succeeding that year.
B. Where an assessee is an individual who is not a
citizen of
C. Where the net wealth of an assessee being an
individual or a Hindu undivided family, includes any assets located outside
Pakistan, the wealth-tax payable by the assessee in respect of any assessment
year will be reduced by an amount which bears to the amount of tax that would
have been payable by the assessee if the rates of tax had been reduced to
one-half of the rates specified in the First Schedule, the same proportion as
the value of the assets located outside Pakistan as reduced by the debts
located outside Pakistan bears to the net wealth of the assessee.
PART - II
B. RATES FOR PURPOSES OF COLLECTION OF TAX
UNDER SECTION 14C
(i) In case of residential plots and houses (including
out-houses, open spaces and appurtenances thereto) measuring 1000 square yards
or more located within:---
|
(i) |
Karachi Metropolitan Corporation. |
At the rate of Rs. 10/- per square yard per annum |
|
(ii) |
Lahore Metropolitan Corporation. |
|
|
(iii) |
|
|
|
(iv) |
Hyderabad Municipal Corporation. |
|
|
(v) |
Sukkur Municipal Corporation. |
|
|
(vi) |
Quetta Municipal Corporation. |
|
|
(vii) |
Multan Municipal Corporation. |
|
|
(viii) |
Faisalabad Municipal Corporation. |
|
|
(ix) |
Gujranwala Municipal Corporation. |
|
|
(x) |
Sialkot Municipal Corporation. |
|
|
(xi) |
Sargodha Municipal Corporation. |
|
|
(xii) |
Rawalpindi Municipal Corporation. |
|
|
(xiii) |
Peshawar Municipal Corporation. |
|
|
(xiv) |
Capital Development Authority, |
|
|
(xv) |
|
|
|
(xvi) |
|
|
|
(xvii) |
|
|
|
(xviii) |
|
|
|
(xix) |
|
|
|
(xx) |
|
|
|
(xxi) |
|
|
|
(xxii) |
|
|
|
(xxiii) |
|
|
|
(xxiv) |
Provincial Departments of Physical Planning and
Housing Schemes. |
|
|
(xxv) |
|
|
|
(xxvi) |
Improvement Trusts of Local Bodies. |
|
|
(xxvii) |
Defence Housing Authority, |
|
|
(xxviii) |
Cantonment Boards:- (a) Peshawar; |
|
|
(ii) |
in the case of apartments and flats with covered
area of 2500 square feet or more located in areas mentioned in sub-paragraph
(i) above. |
Rs. 2/- per square foot per annum. |
C. RATES FOR PURPOSES OF COLLECTION OF
TAX UNDER SECTION 14D
In the case of motor vehicles (not plying for hire)
being less than seven years old,---
|
(i) |
engine capacity 1500cc to 2000cc |
Rs. 10,000 per annum |
|
(ii) |
engine capacity 2001cc to above |
Rs. 20,000 per annum |
PART III
RATES OF SURCHARGE
Where the net wealth or asset held on the valuation
date relevant to an assessment year commencing on or after the first day of
July, 1998, or thereafter, of an individual, Hindu undivided family, firm,
association of persons or body of individuals, whether incorporated or not, and
a company, is chargeable to tax in accordance with the rates prescribed in
Part-1 or paragraph B or paragraph C of Part-II, a surcharge shall be payable
at the rate of ten per cent of the wealth tax payable under this Schedule.
THE SECOND SCHEDULE
(see Section 5)
PART I
EXEMPTIONS FROM TAX
Wealth tax shall not be payable by an assessee in
respect of the following assets, and such assets shall not be included in the
net wealth of the assessee,---
(1) assets in respect of which Zakat or contribution
in lieu thereof has been deducted at source under the Zakat and Ushr Ordinance,
1980 (XVIII of 1980), in that year or during the Zakat year commencing immediately
before the valuation date.
Explanation.-
“Zakat year” means year according to the Hijra Calendar for which Zakat is
chargeable, commencing on the first day of Ramadhan-ul-Mubarak and ending with
the last day of the following Sha’ban-ul-Moazzam;
(2) the agricultural land received by an assessee from
Government in pursuance of any gallantry or merit award instituted or approved
by the Federal Government;
(3) agricultural land, subject to a maximum of one
million rupees in value;
(4) one dwelling house, at the option of the assessee,
situated on or in the immediate vicinity of the agricultural land, owned by a
person to whom sub-para (i) of paragraph (A) of Part I of the First Schedule
(relating to agricultural assets) applies;
(5) the tools and implements used by the assessee for
the raising of agricultural produce;
Explanation.-
For the purposes of this clause, tools and implements include tractors, tube
wells and other farm machinery but do not include any plant or machinery used
in any tea or other plantation in connection with the processing of any
agricultural produce or in the manufacture of any article from such produce;
(6) one pick-up owned by the owner of agricultural
assets and used by him for agricultural purpose and one other motor vehicle owned
by such person;
(7) assets,---
(i) brought or remitted by an assessee into
(ii) created by an assessee out of remittances
received in, or brought into Pakistan, through normal banking channels, during
the period referred to in sub-clause (i):---
Provided that where investment in the assets is not
made entirely out of remittances received in, or brought into Pakistan through
normal banking channels, the exemption shall apply in the same ratio as the
foreign remittances bear to the total investment;
(iii) represented by Special US Dollar Bonds purchased
under the Special US Dollar Bonds Rules, 1998, for the period for which such
bonds are held by the original registered owner, and in the case of the
subsequent registered owners, for the unexpired period of maturity of such
bonds:---
Provided that any asset created out of the sale
proceeds of such bonds by the original registered owner shall also enjoy
exemption for an aggregate period of six years reckoned from the year in which
these were converted from the Foreign Currency Accounts or deposits and the
following five years.
(8) asset representing the amount deposited in a
private foreign currency account held with an authorized bank in
(8A) Rupee amounts, or assets, created out of
withdrawal from foreign currency accounts or encashment of US Dollar Bearer
Certificates and Foreign Currency Bearer Certificates on or after the twenty
ninth day of May, 1998, in the year of conversion or creation of assets and the
following five years:---
Provided that where investment in the assets is not
made entirely out of the aforesaid accounts and certificates, the exemption
shall apply in the same ratio as the said conversion or encashment bears to the
total investment.
(9) (i) Bearer National Fund Bonds, issued under the
Bearer National Fund Bonds Rules, 1985;
(ii) Special National Fund Bonds, issued under the
Special National Fund Bonds Rules, 1985;
(iii) Foreign Exchange Bearer Certificates, issued
under the Foreign Exchange Bearer Certificates Rules, 1985; and
(iv) Foreign Currency Bearer Certificates issued under
the Three Year Foreign Currency Bearer Certificates Rules, 1997.
(10) the asset representing the amount invested in any
certificate issued in pursuance of the U.S. Dollar Bearer Certificate Rules,
1991;
(10A) The assets representing the amount invested in
any National Savings or deposit Certificates including Defence Saving
Certificates issued under the National Savings Scheme:---
Provided that this clause shall apply only in respect
of certificates which are liable to compulsory deduction of Zakat under the
Zakat and Ushr Ordinance, 1980 (XVIII of 1980):---
Provided further that this clause shall be deemed to
have taken effect from the 26th day of October, 1992.
(11) furniture, household utensils, wearing apparel,
provisions and other articles (excluding jewellery and cars) intended for the
personal or household use of the assessee;
(12) (1) one residential house, owned and occupied by
the assessee for purposes of his own residence, where the assessee opts to
exclude such house from his assets:---
Provided that such option may be exercised by either
of the spouse;
Provided further that where an assessee exercises an option under this
sub-clause, proviso (a) to sub-paragraph (2) of paragraph A of the First
Schedule shall not apply.
(2) One shop owned and occupied by the assessee for the
purposes of his own business;
(13) books and manuscripts belonging to an assessee,
not intended for sale;
(14) Investment not exceeding two hundred thousand
rupees or 50% of the share holding of a tax payer, whichever is higher, in
stock or shares, of a public company, engaged in an industrial undertaking
whose shares are subject of dealings in a registered stock exchange in Pakistan
at any time during the income year and which remained listed on the stock
exchange till the close of that year, acquired otherwise than by purchase or
transfer from a previous holder of such stocks or shares, for a period of two
years commencing from the year in which such stocks or shares are issued for
public subscription.
(15) drawings, paintings, prints, works of art or
scientific collection which are of national, scientific or historic interest,
belonging to an assessee and not intended for sale;
(16) the right or interest of the assessee in any
policy of insurance before the moneys covered by the policies become due and
payable to the assessee;
(17) the right of the assessee to receive a pension or
other life annuity in respect of past services under an employer;
(18) the amount standing to the credit of an assessee,
being a salaried employee, in any provident fund maintained by his employer to
which the Provident Funds Act, 1925, applies or which is a recognised provident
fund within the meaning of Chapter IXA of the Income Tax Act, 1922 or Part I of
the Sixth Schedule to the Income Tax Ordinance, 1979;
(19) final payment of accumulations in a provident
fund referred to in clause (18) and the commuted amount of pension received
during the year;
(20) the tools, instruments and other apparatus
necessary to enable the assessee to carry on his profession, vocation or
scientific research;
(21) the rights under any patent or copyright
belonging to the assessee:---
Provided that these are not held by him as assets of a
business, profession or vocation and no income or benefit accrues to him
therefrom;
(22) any property held by him under trust or other
legal obligation for any public purpose of a charitable or religious nature in
(23) the interest of the assessee in the coparcenary
property of Hindu undivided family of which he is a member;
(24) Compensation Bonds issued under the West Pakistan
Land Reforms (Payment of Compensation) Rules, 1961, held by an assessee not
being a transfer for valuable consideration;
(25) immovable property held by the Chambers or
Associations of Commerce, Trade and Industry recognised by the Federal
Government;
(26) assets belonging to institutions of the Aga Khan
Development Network (Pakistan), listed in Schedule 1 of the Accord and Protocol,
dated November 13, 1994, executed between the Government of the Islamic
Republic of Pakistan and Aga Khan Development Network, held on the valuation
dates relevant to the assessment year 1995-196 and onwards;
(27) assets of the,---
(i) Institution of Engineers,
(ii) Pakistan Medical Association,
(iii) International Irrigation Management Institute,
(28) in respect of wealth in
(a) head of a mission, members of the diplomatic staff
of the mission and members of their families forming part of their respective
households; and
(b) consular officers, consular employees and members
of their families forming part of their respective households.
Explanation.-
Premises of a mission or a consulate and the residence of the head of a mission
or career head of a consular post, of which the sending state or any person
acting on its behalf is the owner or lessee, shall not be treated as “private
immovable property.
This exemption shall not apply to a citizen of
(29) Assets representing amounts deposited. under the
Prime Minister’s Fund for National Debt Retirement.
(31) Assets owned and held by a company, in which the
Federal Government and WAPDA hold, whether jointly or severally, more than
ninety-nine per cent shares, engaged in generation of thermal power,
transmission or distribution of electricity, for the assessment years 1998-99,
1999-2000 and 2000-20001.
(32) The houses build on land area not exceeding six
marlas (one hundred fifty square yards) or apartments with covered area not
exceeding twelve hundred square feet for five years, constructed under Prime
Minister’s Programme for Economic Revival (Housing Sector).
(33) Any asset declared under the “Tax Amnesty Scheme,
2000” made under section 59D of the Income Tax Ordinance, 1979 (XXXI of 1979),
in respect of any assessment year commencing on or before the first day of
July, 1999 and subsequent assessment years.”
PART-II
EXEMPTIONS FROM SPECIFIC PROVISIONS
Assets, or classes of asset, or persons or classes of
persons shall be exempt from the operation of such provisions of this Act, as
are enumerated below, subject to such conditions and to the extent, specified
hereunder:---
(1) The provisions of sections 18, 31B and 36 shall
not apply for failure to,---
(a) furnish on the due date or dates a return or
returns of net wealth; or
(b) disclose an asset or assets in the return or
returns of wealth; or
(c) disclose an asset fully or correctly, for any assessment year ending on or
before 30th June 1995. This exemption shall be available subject to the
following conditions, namely:---
(i) the return for assessment year 1996-97 is filed by
the due date;
(ii) tax due is paid alongwith the return of wealth;
and
(iii) full and correct declaration of assets is made
in the return for the assessment year 1996-97.
(1A) The provisions of sections 18, 31B, 31BBB and 36
shall not apply on account of failure on the part of any assessee to furnish return of net wealth under section 14 and
failure to pay tax under section 14A or 14B or 14C, in respect of any
assessment year commencing on or before the first day of July, 1999, provided
that such return is furnished on or before the 20th November, 2000 and tax is paid in full alongwith the said
return.
(1B) The provisions of section 18, 31B,31BBB and 36 shall
not apply to an existing assessee for non payment of tax by the due dates under
section 14A or 14B or 14C, in respect of any assessment year commencing on or
before the first day July, 1999, where such assessee.
(a) furnishes a revised
return of net wealth in respect of the assessment year for which the assessment
is pending; or
(b) furnishes a revised
return declaring complete particulars and value of any asset which he was
unable to declare in his return of wealth tax for any past years and makes a
request for the reassessment of his wealth for the relevant years under section
17 on the basis of such revised return; and
(c) furnishes the aforesaid
return on or before the 20th November, 2000, and pays the full amount of tax
along with the said return:---
Provided that nothing in this clause shall apply to
cases where any concealment proceedings have already been initiated or the
information regarding concealment is in possession of the Deputy Commissioner
of Wealth Tax;
(2) The provisions of clause (d) of sub-section (1) of
section 14, Section 14C and section 14D shall not apply to the assets owned by
companies specified in entry (31) of Part-I of this Schedule for the assessment
years 1998-99, 1999-2000 and 2000-2001.
(3) The provisions of sections 14C or 14D shall not
apply to any person who is registered under the Voluntary Social Welfare
Agencies (Registration and Control) Ordinance, 1961 (XLVI of 1961) and is
approved under clause (d) of sub-section (1) of section 47 of the Income Tax
Ordinance, 1979.
(4) The provisions of section 14D shall not apply to
any assets owned by a technical cooperation officer, not being a citizen of
Pakistan, provided in pursuance of the Memorandum of Understanding signed on
the twenty third day of August, 1992, between the Government of the United
Kingdom of Great Britain and Northern Ireland and the Government of the Islamic
Republic of Pakistan, concerning Technical Cooperation and British Council
Activities.
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