Wealth Tax Act: Section 5(1)(viiia) Exemption Applies Only to Tea Leaves, Not Entire Bush or Plant.

The circular addresses the interpretation of Section 5(1)(viiia) of the Wealth Tax Act, 1957, concerning exemptions for agricultural assets. It clarifies that the exemption applies only to the produce, such as tea leaves, and not to the entire tea bush or plant. Prior to April 1, 1976, exemptions were limited to growing crops and fruits on trees. From that date, trees standing on agricultural lands were also exempt. The board concludes that only the value of tea leaves qualifies for exemption under the specified section, not the entire tea bush or plant.