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Wealth Tax Act, 1963
ACT NO. XV OF 1963
An Act to provided for the
levy of wealth-tax
Whereas it is expedient to levy tax on wealth.
It is hereby enacted as follows:-
CHAPTER I
PRELIMINARY
1. Short
title, extent and commencement.- (1) This Act may be called the Wealth-tax Act,
1963.
(2) It extends to the whole of Pakistan.
(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" include--
(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 land and 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 out-house; 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 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, a Wealth tax Officer, a Special Officer and 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 (XXXI 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 offices, 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 of 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 a
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 charged on such right, title or
interest,; and
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
Commissioner has served a notice of his intention 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 Islamabad Capital Territory;
(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).
