When any tax, interest, penalty, fine or any other sum is payable in consequence of any order passed under this Act, the Wealth-tax Officer shall serve upon the asses see a notice of demand in the prescribed form specifying the sum so payable.
(1) Any amount specified as payable in a notice of demand under section 30 shall be paid within thirty-five days of the service of the notice at the place and to the person mentioned in the notice:
Provided that, where the Wealth-tax Officer has any reason to believe that it will be detrimental to revenue if the full period of thirty-five days aforesaid is allowed, he may, with the previous approval of the Inspecting Assistant Commissioner, direct that the sum specified in the notice of demand shall be paid within such period being a period less than the period of thirty-five days aforesaid, as may be specified by him in the notice of demand.
(2) If the amount specified in any notice of demand under section 30 is not paid within the period limited under sub-section (1), the asses see shall be liable to pay simple interest at 1*[twelve per cent.] per annum from the day commencing after the end of the period mentioned in sub-section (1): Provided that where as a result of an order under section 23, or section 24, or section 25, or section 26, or section 27, or section 29, or section 35, the amount on which interest was payable under this section had been reduced, the interest shall be reduced accordingly and the excess interest paid, if any, shall be refunded.
(3) Without prejudice to the provisions contained in sub-section (2), on an application made by the asses see before the expiry of the due date under sub-section (1), the Wealth-tax Officer may extend the time for payment or allow payment by installments, subject to such conditions as he may think fit to impose in the circumstances of the case.
(4) If the amount is not paid within the time limited under sub-section (1) or extended under sub-section (3), as the case may be, at the place and to the person mentioned in the said notice, the asses see shall be deemed to be in default.
(5) If in a case where payment by installments is allowed under sub-section (3), the asses see commits default in paying any one of the installments within the time fixed under that sub-section, the asses see shall be deemed to be in default as to the whole of the amount then outstanding, and the other installment or installments shall be deemed to have been due on the same date as the installment actually in default.
(6) Where an asses see has presented an appeal under section 23, the Wealth-tax Officer may, in his discretion, and subject to such conditions, as he may think fit to impose in the circumstances of the case, treat the asses see as not being in default in respect of the amount in dispute in the appeal, even though the time for payment has expired, as long as such appeal remains undisposed of.
(7) Where an asses see has been assessed in respect of assets located in a country outside India, the laws of which prohibit or restrict the remittance of MONEY to India, the Wealth-tax Officer shall not treat the asses see as in default in respect of that part of the tax which is attributable to those assets, and shall continue to treat the asses see as not in default in respect of that part of the tax until the prohibition or restriction of remittance is removed.
The provisions contained in sections 221 to 227, 229, 231 and 232 of the Income-tax Act and the Second and Third Schedules to that Act and any rules made there under shall, so far as may be, apply as if the said provisions were provisions of this Act and referred to wealth-tax and sums imposed by way of penalty, fine and interest under this Act instead of to Income-tax and sums imposed by way of penalty, fine and interest under that Act and to Wealth-tax officer and Commissioner of Wealth-tax instead of to Income-tax officer and Commissioner of Income-tax.
Explanation I- Any reference to section 173 and sub-section (2) or sub-section (6) or sub-section (7) of section 220 of the Income-tax Act in the said provisions of that Act or the rules made there under shall be construed as references to sub-section (7) of section 22 and sub-section (2) or sub-section (6) or sub-section (7) of section 31 of this Act respectively.
Explanation II- The 1*[Tax Recovery Commissioner and the Tax Recovery Officer referred to in the Income-tax Act shall be deemed to be the Tax Recovery Commissioner and the Tax Recovery Officer] for the purposes of recovery of wealth-tax and sums imposed by way of penalty, fine and interest under this Act.]
(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 have 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 Wealth-tax Officer in this behalf, to pay that portion of the tax assessed on the asses see as is attributable to the value of the asset standing in his name as aforesaid: Provided that where any such 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 asses see in default in respect of such sum, and all the provisions of this Act relating to recovery shall apply accordingly.
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