Subject: APPLICABILITY OF ADVANCE WEALTH TAX U/S 14D OF THE WEALTH TAX ACT, 1963 ON COMPANIES

Queries have been received by the board seeking clarification whether public limited companies quoted on Stock Exchange or companies whose majority shares are held by Government, which are exempt from wealth tax under Wealth Tax Act, 1963, are still under legal obligation to pay advance Wealth Tax under section 14D of the said Act.

2. The issue has been considered by the Board and it is clarified that all companies in which not less than fifty percent shares are held by the Government and pubic limited companies, whose shares remained listed on the Stock Exchange till the close of the year, are not liable to pay wealth tax and hence not required to pay the same in advance.

(M. SHAHID ZAHEER)

Secretary (Wealth-tax)

Phone No. 9204279