CourtMesh

Section 6: Exclusion of assets and debts outside India

The Wealth-Tax Act, 1957Central Act · Act 27 of 1957

Exclusion of assets and debts outside India.

In computing the net wealth of an individual [who is not a citizen of India or of an individual] or a Hindu undivided family not resident in India or resident but not ordinarily resident in India, or of a company not resident in India during the year ending on the valuation date—

(i) the value of the assets and debts located outside India ; and

(ii) the value of the assets in India 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 not to be included in the total income of the assessee under [section 10] of the Income-tax Act ;

shall not be taken into account.

Explanation 1.—An individual or a Hindu undivided family shall be deemed to be not resident in India or resident but not ordinarily resident in India 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 India or resident but not ordinarily resident in India within the meaning of the Income-tax Act.

[Explanation 1A.—Where in the case of an individual the value of an asset in India is represented by any debt owing to him, being any moneys to his credit in a Non-resident (External) Account, the interest payable on which is not to be included in his total income under [sub-clause (ii) of clause (4)] of section 10 of the Income-tax Act, the provisions of this section shall, in relation to such asset, apply subject to the modification that the reference in this section to an individual not resident in India shall be construed as a reference to a person resident outside India as defined in clause (q) of section 2 of the Foreign Exchange Regulation Act, 1973 (46 of 1973)].

Explanation 2.—A company shall be deemed to be resident in India during the year ending on the valuation date, if—

(a) it is a company formed and registered under the Companies Act, 1956 (1 of 1956), or is an existing company within the meaning of that Act ; or

(b) during that year the control and management of its affairs is situated wholly in India.

Where this provision sits

ActThe Wealth-Tax Act, 1957
Section6
Marginal noteExclusion of assets and debts outside India
JurisdictionCentral
StatusIn force as published by the source

How this provision has been amended

Taken from the footnotes printed with the provision by the source. Where a footnote names the amending instrument, it is quoted as printed.

  • other. See also Circular No. 3 (WT) of 1957 (relevant extracts), dated 28-9-1957. For details, see Referencer.
  • inserted. Inserted by the Finance Act, 1958, w.r.e.f. 1-4-1957.
  • substituted. Substituted for "sub-section (3) of section 4" by the Wealth-tax (Amendment) Act, 1964, w.e.f. 1-4-1965.
  • inserted. Inserted by the Finance Act, 1982, w.e.f. 1-4-1982.
  • substituted. Substituted for "clause (4A)" by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
  • other. Clause (q) of section 2 of the Foreign Exchange Regulation Act, 1973, defines "person resident outside India" as follows : '(q) "person resident outside India" means a person who is not resident in India ;'

Find the provision, not just read it

The full text above is free, and it stays free. What a free CourtMesh account adds is everything you cannot do by reading one page at a time:

  • Search 49,000+ Central and State enactments by what a provision says, not by its number
  • Jump from any section to every judgment that has applied it
  • Search 300 million+ Indian court records alongside the statute
  • Ask a research agent to find and read the case law on a provision for you

Free account. No card. About a minute to create.

Create a free account

Need this as data, not as a page? The Wealth-Tax Act, 1957 is one of 49,000+ enactments on CourtMesh. The Indian court cases API serves the case law that cites these provisions over JSON, with API documentation and plans and pricing. See also the judgment library.