Annuity non-commutability: annuities under annuity deposit scheme treated as exempt from wealth-tax, with retrospective amendment The Board concluded that annuities under the annuity deposit scheme are generally non-commutable and thus exempt from wealth-tax under section 2(e)(iv), and proposed a retrospective clarificatory amendment to section 5(1). Pending assessments must not include the value of such annuities in net wealth; completed assessments that included commuted values are to be rectified suo motu and applications for rectification will be accepted. The prior position treated such annuities as includible where commutation was possible, valuing them by reference to the scheme's table of commuted values.
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Annuity non-commutability: annuities under annuity deposit scheme treated as exempt from wealth-tax, with retrospective amendment
The Board concluded that annuities under the annuity deposit scheme are generally non-commutable and thus exempt from wealth-tax under section 2(e)(iv), and proposed a retrospective clarificatory amendment to section 5(1). Pending assessments must not include the value of such annuities in net wealth; completed assessments that included commuted values are to be rectified suo motu and applications for rectification will be accepted. The prior position treated such annuities as includible where commutation was possible, valuing them by reference to the scheme's table of commuted values.
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