Exclusion of assets and debts outside India.
216. In computing the net wealth of
an individual 22[who is not a citizen of India or of an
individual] or a Hindu undivided family not resident in India or resident but
not ordinarily resident in India, or of a company not resident in India during
the year ending on the valuation date—
(i) the
value of the assets and debts located outside India ; and
(ii) the
value of the assets in India represented by any loans or debts owing to the
assessee in any case where the interest, if any, payable on such loans or
debts is not to be included in the total income of the assessee under 23[section 10] of the Income-tax Act ;
shall not be taken into account.
Explanation 1.—An individual or a Hindu undivided family
shall be deemed to be not resident in India or resident but not ordinarily
resident in India during the year ending on the valuation date if in respect of
that year the individual or the Hindu undivided family, as the case may be, is
not resident in India or resident but not ordinarily resident in India within
the meaning of the Income-tax Act.
24[Explanation
1A.—Where in the case of an individual the value of an asset in India is
represented by any debt owing to him, being any moneys to his credit in a
Non-resident (External) Account, the interest payable on which is not to be
included in his total income under 25[sub-clause
(ii) of clause (4)] of section 10 of the Income-tax Act, the
provisions of this section shall, in relation to such asset, apply subject to
the modification that the reference in this section to an individual not
resident in India shall be construed as a reference to a person resident
outside India as defined in clause (q) of section 226 of the Foreign Exchange Regulation Act, 1973
(46 of 1973)].
Explanation 2.—A company shall be deemed to be resident in
India during the year ending on the valuation date, if—
(a) it is a company formed and registered under the
Companies Act, 1956 (1 of 1956), or is an existing company within the meaning
of that Act ; or
(b) during that year the control and management of
its affairs is situated wholly in India.