MudraMantri (Wantapreneur) (491 Points)
05 October 2010Please explain How to calculate 7 consecutive assessement year for which assets acquired by a citizen or residents of India to whom exemption u/s 5(V) of Wealth Tax Act 1957 is applicable.
For e.g. Suppose the assesse returned to India on 1/11/2004. For what AY exemption u/s 5(v) will be available?
K.Sivakumar
(Chartered Accountant)
(60 Points)
Replied 08 October 2010
Hi Yuvraj
I am just reproducing the Act for your reference. According to me, in this case the 7 years should start from 1st April 2005 (A.Y) i.e. 2005-06.
I hope this helps
[(v)] 9in the case of an assessee, being a person of Indian origin 10[or a citizen of India (hereafter in this clause referred to as such person)] who was ordinarily residing in a foreign country and who, on leaving such country, has returned to India with the intention of permanently residing therein, moneys and the value of assets brought by him into India and the value of the assets acquired by him out of such moneys 11[within one year immediately preceding the date of his return and at any time thereafter] :
Provided that this exemption shall apply only for a period of seven successive assessment years commencing with the assessment year next following the date on which such person returned to India.
Explanation 12[1].—A person shall be deemed to be of Indian origin if he, or either of his parents or any of his grand-parents, was born in undivided India.]
13[Explanation 2.—For the removal of doubts, it is hereby declared that moneys standing to the credit of such person in a Non-resident (External) Account in any bank in India in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made thereunder, on the date of his return to India, shall be deemed to be moneys brought by him into India on that date;]
Thanks
Sivakumar.K - 98802 63100
CAclubindia
