Exemption from wealth-tax in respect of assets specified in declaration

Q: When was Section 194 of the Finance Act enacted?

Section 194 of the Finance Act, cited as Finance Act 2016 194, was enacted on 27 Jun 2016. It is in force as at the date shown on this page.

In force As on 07 Oct 2026

Ministry Finance Enacted 27 Jun 2016 Cited by 2 provisions

Section 194 of the Finance Act, 2016 deals with exemption from wealth-tax in respect of assets specified in declaration. Exemption from wealth-tax in respect of assets specified in declaration. The Act was enacted on 27 Jun 2016.

Exemption from wealth-tax in respect of assets specified in declaration.
194. (1) Where the undisclosed income is represented by cash (including bank deposits), bullion, investment in shares or any other assets specified in the declaration made under section 183—
(a) in respect of which the declarant has failed to furnish a return under section 14 of the Wealth-tax Act, 1957 (27 of 1957), for the assessment year commencing on or before the 1st day of April, 2015; or
(b) which have not been shown in the return of net wealth furnished by him for the said assessment year or years; or
(c) which have been understated in value in the return of net wealth furnished by him for the said assessment year or years,
then, notwithstanding anything contained in the Wealth-tax Act, 1957 (27 of 1957), or any rules made thereunder,—
(i) wealth-tax shall not be payable by the declarant in respect of the assets referred to in clause (a) or clause (b) and such assets shall not be included in his net wealth for the said assessment year or years;
(ii) the amount by which the value of the assets referred to in clause (c) has been understated in the return of net wealth for the said assessment year or years, to the extent such amount does not exceed the voluntarily disclosed income utilised for acquiring such assets, shall not be taken into account in computing the net wealth of the declarant for the said assessment year or years.
Explanation.—Where a declaration under section 183 is made by a firm, the assets referred to in sub-clause (i) or, as the case may be, the amount referred to in sub-clause (ii) shall not be taken into account in computing the net wealth of any partner of the firm or, as the case may be, in determining the value of the interest of any partner in the firm.
(2) The provisions of sub-section (1) shall not apply unless the conditions specified in sub-sections (1) and (2) of section 187 are fulfilled by the declarant.
Section 194, The Finance Act, 2016.

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

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Referred to by 2

Questions about Section 194

What does Section 194 of the Finance Act deal with?

Section 194 of the Finance Act is headed "Exemption from wealth-tax in respect of assets specified in declaration". Exemption from wealth-tax in respect of assets specified in declaration.

How do I find court cases under Section 194 of the Finance Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 2016 194, section 194 Finance Act 2016, section 194 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 194 of the Finance Act, and has it changed?

Its own text turns on section 183 (Declaration of undisclosed income), section 187 (Time for payment of tax), Wealth-tax Act 14 (Return of wealth), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it.

When was Section 194 of the Finance Act enacted?

Section 194 of the Finance Act, cited as Finance Act 2016 194, was enacted on 27 Jun 2016. It is in force as at the date shown on this page.

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(a)		in respect of which the declarant has failed to furnish a return under section 14 of the Wealth-tax Act, 1957 (27 of 1957), for the assessment year commencing on or before the 1st day of April, 2015; or
(b)		which have not been shown in the return of net wealth furnished by him for the said assessment year or years; or
(c)		which have been understated in value in the return of net wealth furnished by him for the said assessment year or years,

(i)		wealth-tax shall not be payable by the declarant in respect of the assets referred to in clause (a) or clause (b) and such assets shall not be included in his net wealth for the said assessment year or years;
(ii)		the amount by which the value of the assets referred to in clause (c) has been understated in the return of net wealth for the said assessment year or years, to the extent such amount does not exceed the voluntarily disclosed income utilised for acquiring such assets, shall not be taken into account in computing the net wealth of the declarant for the said assessment year or years.