Wealth-tax Act,1957
Act No : 27
Section :
Assessment when assets are held by courts of wards, administrators-general, etc.
21. Assessment when assets are held by courts of wards, administrators-general, etc. (1) In the case of assets chargeable to tax under this Act which are held by a court of wards or an administrator-general or an official trustee or any receiver or manager or any other person, by whatever name called, appointed under any order of a court to manage property on behalf of another, or any trustee appointed under a trust declared by a duly executed instrument in writing, whether testamentary or otherwise (including a trustee under a valid deed of wakf), the wealth-tax shall be levied upon and recoverable from the court of wards, administrator-general, official trustee, receiver, 803 manager or trustee, as the case may be, in the like manner and to the same extent as it would be leviable upon and recoverable from the person 1*[on whose behalf or for whose benefit] the assets are held, and the provisions of this Act shall apply accordingly. (2) Nothing contained in sub-section (1) shall prevent either the direct assessment of the person 1*[on whose behalf or for whose benefit] the assets above referred to are held, or the recovery from such person of the tax payable in respect of such assets. (3) Where the guardian or trustee of any person being a minor, lunatic or idiot 2* holds any assets 3*[on behalf or for the benefit of such beneficiary,] the tax under this Act shall be levied upon and recoverable from such guardian or trustee, as the case may be, in the like manner and to the same extent as it would be leviable upon and recoverable from any such beneficiary if of full age or sound mind and in direct ownership of such assets. 4*[(4) Notwithstanding anything contained in this section, where the shares of the persons on whose behalf or for whose benefit any such assets are held are indeterminate or unknown, the wealth-tax shall be levied upon and recovered from the court of wards, administrator-general, official trustee, receiver, manager, or other person aforesaid as if the persons on whose behalf or for whose benefit the assets are held were an individual who is a citizen of India and resident in India for the purposes of this Act, and-- (a) at the rates specified in Part I of the Schedule 5*; or (b) at the rate of one and one-half per cent., whichever course would be more beneficial to the revenue: Provided that in a case where-- (i) such assets are held under a trust declared by will; or (ii) such assets are held under a trust created before the 1st day of March, 1970, by a non-testamentary instrument and the Wealth-tax Officer is satisfied, having regard to all the circumstances existing at the relevant time, that the trust was created bona fide exclusively --------------------------------------------------------------------- 1 Subs. by Act 46 of 1964, s. 20, for "on whose behalf" (w.e.f. 1- 4-1965). 2 Certain words omitted by s. 20, ibid. (w.e.f. 1-4-1965). 3 Subs. by s. 20, ibid., for "on behalf of such beneficiary" (w.e.f. 1-4-1965). 4 Subs. by Act 19 of 1970, s. 26, for sub-section (4) (w.e.f. 1-4- 1971). 5 The words "in the case of an individual" omitted by Act 32 of 1971, s. 34 (w.e.f. 1-4-1972). 804 for the benefit of the relatives of the settlor or where the settlor is a Hindu undivided family, exclusively for the benefit of the members of such family, in circumstances where such relatives or members were mainly dependent on the settlor for their support and maintenance; or (iii) such assets are held by the trustees on behalf of a provident fund, superannuation fund, gratuity fund, pension fund or any other fund created bona fide by a person carrying on a business or profession exclusively for the benefit of persons employed in such business or profession, wealth-tax shall be charged at the rates specified in Part I of the [Schedule 1*.] 2*[Explanation.--Notwithstanding anything contained in section 5, in computing the net wealth for the purposes of this sub-section in any case, not being a case referred to in the proviso, any assets referred to in clauses (xv), (xvi), (xxii), (xxiii), (xxiv), (xxv), (xxvi), (xxvii), (xxviii) and (xxix) of sub-section (1) of that section shall not be excluded.] 3*[(5) Any person who pays any sum by virtue of the provisions of this section in respect of the net wealth of any beneficiary, shall be entitled to recover the sum so paid from such beneficiary, and may retain out of any assets that he may hold on behalf or for the benefit of such beneficiary, an amount equal to the sum so paid. Explanation.--In this section, the term "beneficiary" means any person including a minor, lunatic or idiot on whose behalf or for whose benefit assets are held by any other person.]
