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Wealth Tax Act_ 1963

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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).

                                  CHAPTER II
            CHARGE OF WEALTH-TAX AND ASSETS SUBJECT TO SUCH CHARGE

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[:]

[]

3A. Tax on undisclosed assets.-- (1) 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 the sub-section (3), the tax on the value of assets declared under sub-section (1) shall be
charged at the rate of seven and one half per cent of the value of the assets.

(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 (1), 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

Residential properties
- Plots and open lands                   Equal to the value specified by the District Collector for the purposes of Stamp Duty as on
                                         June 30, 1997
- Super structure                        At the rate of Rs 300 per square foot.
- Apartments/flats                       As registered for the purposes of Stamp Duty
Commercial properties
-Plots and open lands                    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.
- Super structure                        At the rate of Rs 300 per square foot.
- Share/stocks of listed Companies       Price quoted at the stock exchange on June 12, 1997.
(including NIT units)
Shares/stocks of companies not quoted The face value or break-up value whichever is higher on June 30, 1997.
on recognised stock exchange.
Investment in Government schemes         Value as on June 30, 1997.
(i.e. NDSC, Postal Certificates, Bond,
Government, Securities, etc.)
Cash and Prize Bonds.                    The face value.
Motor vehicles                           (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.
                                         (b) Motor vehicles purchased from a manufacturer or assembler or dealer in Pakistan.-- The
                                         price paid by the purchaser, including the amount of all charges, customs duty, sales tax and
                                         other taxes, levies, octroi, fees and all other duties and taxes leviable thereon and the costs
                                         incurred till their registration.
                                         (c) Motor vehicles specified in clauses (a) and (b) on the valuation date following the
                                         valuation dates in which the vehicle was first assessable in the hands of the assessee.-- The
                                         value computed in the manner specified in the clause (a) or clause (b), as the case may be, as
                                         reduced by a sum equal to 10% of the said value for each
                                         successive year, upto a maximum of five years.

                                         (d) Used motor vehicles purchased by an assessee locally.-- The original cost of the vehicle
                                         determined in the manner specified in clause (a) or clause (b), as the case may be, as reduced
                                         by an amount equal to 10% for every year following the year in which it was imported or
                                         purchased from a manufacturer;

                                         Provided that in no case shall the value be determined at an amount less than fifty per cent of
                                         the value determined in the aforesaid manner.
Other assets.                               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 surcharges.-In a 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 III of the First Schedule.

                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 be 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 races 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 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.

[]

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 Pakistan; and
(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.

[]

[]

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 sub-section (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.

                                          CHAPTER III
                                     WEALTH TAX AUTHORITIES

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.

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.

(5)
10. Jurisdiction of Wealth-tax authorities.-- (1) Subject to the provisions of this Act.*
[*should have been a comma.]

(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:**
[**should have been a semi-colon.]

***(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 Commissioners 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" [:] [***the apparently intended letter and brackets "(b)" are missing in the
Gazette.]

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 Commissioners 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 Commissioners 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 Commissioners", shall be deemed to be references to
"Inspecting Additional Commissioners" 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 sub-ordinate, may make for the allocation of functions and the distribution of
the work to be performed. [*apparently intended word "or" is missing in the Gazette]

(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. [*should have been "net income" instead of "total
income"]

(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.

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.

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 * any other wealth-tax authority to whom he is subordinate or
any other person authorised in this behalf by the Central Board of Revenue. [*the apparently intended word
"by" is missing in the Gazette.]

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;**
[**should have been a colon.]

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.




                                       CHAPTER IIIA
                             PAYMENT OF TAX BEFORE ASSESSMENT

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 installments, wealth tax may be collected in
the like manner.

(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 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 year."; and

(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.

                                               CHAPTER IV
                                               ASSESSMENT

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) fiat or apartment with covered area of 2000 sq. feet or more ; or

(d) who own,--
(i) residential plot or house (including converted 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 for 1600 cubic centimeters or more:

Provided that nothing contained in this clause shall apply to widows; orphans below the age of twenty-five
years; pensioners; non-resident Pakistan 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:

Provided that where the net wealth of an assessee comprises agricultural assets, he shall file a separate
return in respect of such portion of his net wealth with the Revenue Officer in the form and manner as may
be prescribed:

Provided further that the Revenue Officer with whom a return of net wealth is filed shall forward it in the
prescribed manner to the Commissioner of Wealth Tax after verifying its correctness and the tax paid with
such return.

Explanation

(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 (XXXI 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:

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.

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 include a person who
is blind, deaf, physically handicapped or mentally retarded."

(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 the notice, the net wealth 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. 2000 per annum

(c) with land area of 1000 sq. yards and above.              Rs. 5000 per annum

(d) with land area of 2000 sq. yards and above               Rs. 10000 per annum

(ii) Flats and apartments with covered area of 2000 sq.      Rs. 2000 per annum
feet and above


  (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.

  (2) 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
  Finn tax liability determined under this Act exceeds the amount paid, if any, under the aforesaid provision,
  the amount so paid shall be adjustable against the final tax liability of the assessee.

  14D. Tax on owners of certain motor vehicles:-- (1) Notwithstanding anything contained in this Act,
  every person who owns a motor vehicle of engine capacity exceeding 1500 cubic centimeters (not plying
  for hire), shall pay wealth tax at the rates and in the manner specified as under:-


  Engine capacity                                               Tax

  1500cc to 2000cc                                              Rs 10,000 per annum

  2001cc and above                                              Rs 20,000 per annum


  Provided that no tax shall be payable under this section by an 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.
(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 sub-section (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 financial year in which it is
paid and it shall be adjusted in compulsory tax payable by the assessee for the said assessment year.

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).

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.

Explanation

(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.

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 [--]

(c)

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 asses-see 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 reassess 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 re-assessment.-- (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 canceling 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 reassessment, may, subject to the provisions of sub-section (3), be completed at any time. [*apparently
intended comma is missing in the Gazette.]

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 funding 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 [ ] 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.

18. Penalty for concealment.-- (1) If the Deputy Commissioner, Appellate Additional Commissioner,
Commissioner or Appellate Tribunal, in the course of any proceedings under his 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     Rs. 200 for each day of default;
weeks

(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.


  [* the brackets appears in the Gazette seem to be superfluous.]


  (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.

                                              CHAPTER V
                               LIABILITY TO ASSESSMENT IN SPECIAL CASES

  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 winch 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 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 section 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 person, 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
rending up order has been made or provisional liquidator appointed.

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.

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.
22. Assessment of persons residing outside Pakistan.--(1) Where the person liable to tax under this Act
resides outside Pakistan, the tax may be levied upon and recovered from his agent, and the agent shall be
deemed to be, for all the purposes of this Act, the assessee in respect of such tax.

(2) Any person employed by or on behalf of a person referred to sub-sect-ion (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 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 Pakistan and in the hands of the agent at the time the
notice of demand is served on him.

                                          CHAPTER V
                           LIABILITY TO ASSESSMENT IN SPECIAL CASES

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 winch 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 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 section 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 person, 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
rending up order has been made or provisional liquidator appointed.

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.

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.

22. Assessment of persons residing outside Pakistan.--(1) Where the person liable to tax under this Act
resides outside Pakistan, the tax may be levied upon and recovered from his agent, and the agent shall be
deemed to be, for all the purposes of this Act, the assessee in respect of such tax.

(2) Any person employed by or on behalf of a person referred to sub-sect-ion (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 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 Pakistan and in the hands of the agent at the time the
notice of demand is served on him.

                                         CHAPTER VI
                             APPEALS, REVISIONS AND REFERENCES
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.

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, which ever 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 Commence-ment 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 his 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 of one accordingly.

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.

[]

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 field 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 judgment thereon containing the grounds on which such judgment is founded
and shall send a copy of such judgment 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 conformably to
such judgment.

(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.

[]

29. Appeal to Supreme Court.-- An appeal shall lie to the Supreme Court from any judgment of the High
Court delivered under section 27 in accordance with the provisions of Article 185 of the Constitution.

                                         CHAPTER VII
                              PAYMENT AND RECOVERY OF WEALTH-TAX

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.

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 1989 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 14A to the date of completion of assessment under section 16.

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.

(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 section 30 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 installments, such
additional amount of tax shall be payable in respect of each installment 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.

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 installment; or
(b) fails to pay any installment 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.

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 Commissio-ner and Commissioner of Wealth-tax instead of to Deputy
Commissioner of Income Tax and Commissioner of Income-tax.

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.

[]

                                             CHAPTER VIII
                                            MISCELLANEOUS

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 , he 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 , he 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.

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) of 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 sub-section (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 triable 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.

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
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.

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.

[]

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.

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.]

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.

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.

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.

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 o[her
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.

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. n the case of every individual, Hindu undivided family, firm, association of persons or body or
individuals, whether incorporated or not and a company the Wealth Tax shall be charged on the next 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%
                          (iii) on the next Rs. 500,000 of net wealth       1.5%
                          (iv) on the next Rs. 500,000 of net wealth        2%
                          (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; and

B. Where an assessee is an individual who is not a citizen of Pakistan and is not resident in Pakistan, the
wealth-tax payable by him in respect of any assessment year computed in accordance with the rates
specified in the First Schedule shall be reduced by an amount equal to fifty per cent thereof.

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
         RATE OF TAX FOR THE PURPOSE OF COLLECTION UNDER SECTION 13A

A.

B. RATE 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

         (ii)     Lahore Metropolitan Corporation.                              of Rs.10/-

        (iii)     Islamabad Capital Territory.                                  per square

         (iv)     Hyderabad municipal Corporation.                           yard per annum

         (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, Islamabad.

        (xv)      Peshawar Development Authority, Peshawar

        (xvi)     Rawalpindi Development Authority,
                  Rawalpindi

        (xvii)    Gujranwala Development Authority,
                  Gujranwala

       (xviii)    Faisalabad Development Authority,
                  Faisalabad.
        (xix)     Lahore Development Authority, Lahore

        (xx)      Multan Development Authority, Multan.

        (xxi)     Hyderabad Development Authority,
                  Hyderabad.

        (xxii)    Quetta Development Authority, Quetta.

       (xxiii)    Karachi Development Authority, Karachi

       (xxiv)     Provincial Departments of Physical Planning
                  and Housing Schemes

        (xxx)     Lahore Cantonment Co-operative Housing
                  Society, Lahore.

       (xxvi)     Improvement Trusts of Local Bodies

       (xxvii)    Defence Housing Authority, Karachi.

       (xxviii)   Cantonment Boards:
                  (a) Peshawar;
                  (b) Rawalpindi;
                  (c) Lahore;
                  (d) Multan;
                  (e) Hyderabad;
                  (f) Karachi Division; and
                  (g) Quetta; and

      (ii)        in the case of apartments and flats with            Rs. 2/- per square foot per
                  covered area of 2500 square feet or more            annum
                  located in areas mentioned in sub--paragraph
                  (i) above.


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 20001cc 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-I 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 Pakistan, or received by an assessee from outside
Pakistan, in the year in which they are brought, remitted or received and the following five years;

(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 U.S. 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 Pakistan in accordance with the Foreign Currency Accounts Scheme
introduced by the State Bank of Pakistan;
(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;

(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;

(3)

(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 tax
payer, whichever is higher, in stocks 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 recognized provident fund within the meaning of Chapter IX 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, profess-ion 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 Pakistan;

(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 I 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 1995-96 and onwards;

(27) assets of the -
(i) Institution of Engineers, Pakistan, Lahore;
(ii) Pakistan Medical Association, Rawalpindi; and
(iii) International Irrigation Management Institute, Pakistan.

(28) in respect of wealth in Pakistan (except private immovable property situated in Pakistan)
owned by--
(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 Pakistan.

(29) Assets representing amounts deposited under Prime Minister’s Fund for National Debt
Retirement.

(30)

(31) Assets owned and held by a company, in which the Federal Government and WAPDA holds,
wheather jointly or severally, more than ninty-nine per cent shares, engaged in generation of
thermal power, transmission or distribution of electricity, for the assessment year 1998-99, 1999-
2000 and 2000-2001.

(32) The houses built 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 assets 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 exempt-ion 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 along with the return of wealth; and
(iii) full and correct declaration of assets is made in the return for the assessment year 1996-97.

(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 year 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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