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Section 21A – The Wealth-Tax Act, 1957

The Wealth-Tax Act, 1957

 

 

21A. Assessment in cases of diversion of property, or of income from property, held under trust for public charitable or religious purposes. —

 

1[21A. Assessment in cases of diversion of property, or of income from property, held under trust for public charitable or religious purposes. — 2[ 3[Notwithstanding anything contained in clause (1) of section 5, where any property is held] under trust for any public purpose of a charitable or religious nature in India, and

 

4[(i) any part of such property or any income of such trust [whether derived from such property or from voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2 of the Income-tax Act], being a trust created on or after the 1st day of April, 1962 enures, directly or indirectly, for the benefit of 5[any interested person], or

 

(ii) any part of the income of the trust [whether derived from such property or from voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2 of the Income-tax Act], being a trust created on or after the 1st day of April, 1962 enures, directly or indirectly, for the benefit of 6[any interested person], 7[***] wealth-tax shall be leviable upon, and recoverable from the trustee or manager (by whatever name called) in the like manner and to the same extent as if the property were held by an individual who is a citizen of India and resident in India for the purposes of this Act,8[***]]:

 

Provided that in the case of a trust created before the 1st day of April, 1962, the provisions of clause (i) shall not apply to any use or application, whether directly or indirectly, of any part of such property or any income of such trust for the benefit of 9[any interested person] if such use or application is by way of compliance with a mandatory term of the trust:

10[***]

 

11 [ 12[Provided further that],—

 

13[(a) in the case of any trust or institution of national importance notified under clause (d) of sub-section (1) of section 80F of the Income-tax Act,—

 

(i) the provisions of clause (i) and clause (ii) shall not apply; and

 

(ii) the other provisions of this section shall apply with the modification that the words “at the maximum marginal rate”, the words and figures “at the rates specified in 14[sub-section (2) of section 3];

 

(b) in the case of any institution, fund or trust referred to in clause (22) or clause (22A) or clause (23B) or clause (23C) of section 10 of the Income-tax Act, the provisions of 15[clauses (i) to (ii)] shall not apply.]

 

Explanation.— For the purposes of this section,—

 

16[(a) the expression “interested person” shall have the meaning assigned to if in clause (a) of Explanation 1 below sub-section (4) of section 80F of the Income-tax Act;

 

(ab) any part of the property or income of a trust shall be deemed to have been used or applied for the benefit of any interested person in every case in which it can be so deemed to have been used or applied within the meaning of clause (c) of sub-section (3) of section 80F of the Income-tax Act at any time during the period of twelve months ending with the relevant valuation date;]]

 

17[***]

(b) “trust” includes any other legal obligation.]

 

——————————————–

1. Ins. by Act 16 of 1972, sec. 46 (w.e.f. 1-4-1973).

 

2. Subs. by Act 18 of 1992, sec. 95, for “Notwithstanding anything contained in clause (i) of sub-section (1) of section 5, where any property is held” (w.e.f. 1-4-1993)

 

3. Subs. by Act 33 of 1996, sec. 58, for “Where any property is held” (w.e.f 1-4-1993).

 

4. Subs. by Act 21 of 1984, sec. 34(b)(1), for certain words (w.e.f. 1-4-1985).

 

5. Subs. by Act 4 of 1988, sec. 144(a), for “any person referred to in sub-section (3) of section 13 of the Income-tax Act” (w.e.f. 1-4-1989).

 

6. Subs. by Act 4 of 1988, sec. 144(b), for “any person referred to in sub-section (3) of section 13 of the Income Tax Act, or” (w.e.f. 1-4-1989).

 

7. Clause (iii) omitted by Act 4 of 1988, sec. 144(c) (w.e.f. 1-4-1989).

 

8. Certain words omitted by Act 18 of 1992, sec. 95(b) (w.e.f. 1-4-1993).

 

9. Subs. by Act 4 of 1988, sec. 144(d), for “any person referred to in sub-section (3) of section 13 of the Income-tax Act” (w.e.f. 1-4-1989).

 

10. Second Proviso omitted by Act 18 of 1992, sec. 95(c) (w.e.f. 1-4-1993). Earlier second proviso was amended by Act 4 of 1988, sec. 144(e) (w.e.f. 1-4-1989).

 

11. Ins. by Act 21 of 1984, sec. 34(b)(2) (w.e.f. 1-4-1985).

 

12. Subs. by Act 18 of 1992, sec. 95(d)(i), for “Provided also that” (w.e.f. 1-4-1993). Earlier this proviso was amended by Act 4 of 1988, sec. 144(f) (w.e.f. 1-4-1989).

 

13. Subs. by Act 4 of 1988, sec. 144(f)(i), for clause (a) (w.e.f. 1-4-1989).

 

14. Subs. by Act 18 of 1992, sec. 95(d)(ii), for “Part I of Schedule I in the case of an individual” (w.e.f. 1-4-1993).

 

15. Subs. by Act 4 of 1988, sec. 144(f)(ii), for “clauses (i) to (ii)” (w.e.f. 1-4-1989).

 

16. Subs. by Act 4 of 1988, sec. 144(g), for clauses (a) and (aa) (w.e.f. 1-4-1989).

 

17. Clause (aa) omitted by Act 18 of 1992, sec. 95(e) (w.e.f. 1-4-1993). Earlier clause (aa) was inserted by Act 21 of 1984, sec. 34(b)(3) (w.e.f. 1-4-1985).

 

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The Wealth-Tax Act, 1957

 

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