( 1 ) Where a person dies, hi s executor, administrator or other legal representative shall be liable to pay out of the estate of the deceased person, to the extent to which the estate is capable of me eting the charge, the wealth-tax assessed as payable by such person, or any sum, which would have been payable by hi m under this Act if he had not died.
( 2 ) Where a person dies without having furnished a return under the provisions of section 14 or after having furnished a return which the1[Assessing Officer] has reason to believe to be incorrect or incomplete, the1[Assessing Officer]may make an assessment of the net wealth of such person and determine the wealth-tax payable by the person on the basis of such assessment, and for this purpose may, by the issue of the appropriate notice which would have had to be served upon the deceased person if he had survived, require from the executor, administrator or other legal representative of the deceased person any accounts, documents or other evidence which might under the provisions of section 16 have been required from the deceased person.
( 3 ) The provisions of sections 14 , 15 and 17 shall apply to an executor, administrator or other legal representative as they apply to any person referred to in those sections.
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1. Substituted by Act 4 of 1988, sec. 127, for "Wealth-tax Officer" w.e.f. 1-4-1988.
Section 19A - Assessment in the case of executors
1[19A. Assessment in the case of executors. -
(1) Subject to as hereinafter provided, the net wealth of the estate of a deceased person shall be chargeable to tax in the hands of the executor or executors.
(2) The executor or executors shall for the purposes of this Act be treated as an individual.
(3) The status of the executor or executors shall for the purposes of this Act as regards residence and citizenship be the same as that of the deceased on the valuation date immediately preceding his death.
(4) The assessment of an executor under this section shall be made separately from any assessment that may be made on him in respect of his own net wealth or on the net wealth of the deceased under section 19.
(5) Separate assessments shall be made under this section in respect of the net wealth as on each valuation date as is included in the period from the date of the death of the deceased to the date of complete distribution to the beneficiaries of the estate according to their several interests.
(6) In computing the net wealth on any valuation date under this section, any assets of the estate distributed to, or applied to the benefit of, any specific legatee of the estate prior to that valuation date shall be excluded, but the assets so excluded shall, to the extent such assets are held by the legatee on any valuation date, be included in the net wealth of such specific legatee on the valuation date.
Explanation. - In this section, "executor" includes an administrator or other person administering the estate of a deceased person.]
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1. Inserted by Act 46 of 1964, sec. 19 w.e.f. 1-4-1965.
Section 20 - Assessment after partition of a Hindu Undivided Family
(1) Where at the time of making an assessment, it is brought to the notice of the 3[Assessing Officer] that a partition has taken place among the members of a Hindu undivided family, and the 3[Assessing Officer], after inquiry, is satisfied that the joint family property has been partitioned as a whole among the various members or group of members in definite portions, he shall record an order to that effect and shall make assessment on the net wealth of the undivided family as such for the assessment year or years, including the year relevant to the previous year in which the partition has taken place, if the partition has taken place on the last day of the previous year and each member or group of members shall be liable jointly and severally for the tax assessed on the net wealth of the joint family as such.
(2) Where the 3[Assessing Officer] is not so satisfied, he may, by order, declare that such family shall be deemed for the purposes of this Act to continue to be a Hindu undivided family liable to be assessed as such.
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1. Substituted by Act 4 of 1988, sec. 127, for Wealth-tax Officer w.e.f. 1-4-1988.
Section 20A - Assessment after partial partition of a, Hindu Undivided Family
1[20A. Assessment after partial partition of a, Hindu Undivided Family
Where a partial partition has taken place after the 31st day of December, 1978, among the members of a Hindu undivided family hitherto assessed as undivided, -
(a) such family shall continue to be liable to be assessed under this Act as if no such partial partition had taken place;
(b) each member or group of members of such family immediately before such partial partition and the family shall be jointly and severally liable for any tax, penalty, interest, fine or other sum payable under this Act by the family in respect of any period, whether before or after such partial partition,;
(c) the several liability of any member or group of members aforesaid shall be computed according to the portion of the joint family property allotted to him or it at such partial partition, and the provisions of this Act shall apply accordingly.
Explanation.. -For the purposes of this section, "partial partition" shall have the meaning assigned to it in clause (b) of the Explanation to section 171 of the Income-tax Act.]
________________________
1. Inserted by act 44 of 1980, sec. 39 w.e.f. 1-4-1980.
Section 21 - Assessment when assets are held by courts of wards, administrators-general, etc.
(1) 1 [Subject to the provisions of sub-section(1A), in the case of assets chargeable to tax under this Act], which are held bya court of wards or an administrator-general or an official trustee or anyreceiver or manager or any other person, by whatever name called, appointedunder any order of a court to manage property on behalf of another, or any trustappointed under a trust declared by a duly executed instrument in writing,whether testamentary or otherwise (including a trustee under a valid deed ofwakf), the wealth-tax shall be levied upon and recoverable from the court ofwards, administrator-general, official trustee, receiver, manager or trustee, asthe case may be, in the like manner and to the same extent as it would beleviable upon and recoverable from the person 2 [on whose behalf orfor whose benefit] the assets are held, and the provisions of this Act shallapply accordingly.
3 [Explanation. -A trust which is not declared by a duly executed instrumentin writing (including a valid deed of wakf) shall be deemed, for the purposes ofthis sub-section, to be a trust declared by a duly executed instrument inwriting if a statement in writing, signed by the trustee or truslees, settingout the purpose or purposes of the trust, particulars as to the trustee ortrustees, the beneficiary or beneficiaries and the trust property, is forwardedto the 4 [Assessing Officer] -
(i)where the trust has been declared before the 1st day of June, 1981, within aperiod of three months from that day; and
(ii)in any other case, within three months from the date of declaration of thetrust.]
5 [(1A)Where the value or aggregate value of the interest or interests of the person orpersons on whose behalf or for whose benefit such Assets are held falls short ofthe value of any such assets, then, in addition to the wealth-tax leviable andrecoverable under sub-section (1), the wealth-tax shall be levied upon andrecovered from the court of wards, administrator-general, official trustee,receiver, manager or other person or trustee aforesaid in respect of the valueof such assets, to the extent it exceeds the value or aggregate value of suchinterest or interests, as if such excess value were the net wealth of anindividual who is a citizen of India and resident in India for the purposes ofthis Act, and--
(i)at the rates specified in Part I of Schedule I; or
(ii)at the rate of three per cent., whichever course would be more beneficial to therevenue.]
(2)Nothing contained in sub-section (1) shall prevent either the direct assessmentof the person 2 [on whose behalf or for whose benefit] the assetsabove referred to are held, or the recovery from such person of the tax payablein respect of such assets.]
(3)Where the guardian or trustee of any person being a minor, lunatic or idiot 6 [*****]holds any assets 7 [on behalf or for the benefit of suchbeneficiary,] the tax under this Act shall be levied upon and recoverable fromsuch guardian or trustee, as the case may he, in the like manner and to the sameextent as it would be leviable upon and recoverable from any such beneficiary ifof full age, of sound mind and in direct ownership of such assets.
8 [(4)9 [Notwithstanding anything contained in the foregoing provisions ofthis section], where the shares of the persons on whose behalf or for whosebenefit any such assets are held are indeterminate or unknown, the wealth-taxshall be levied upon and recovered from the court of wards,administrator-general, official trustee, receiver, manager, or other personaforesaid 10 [, as the case may be, in the like manner and to the sameextent as it would be leviable upon and recoverable from an individual who is acitizen of India and resident in India] for the purposes of this Act, and-
(a)at the rates specified in Part I of 11 [Schedule I] 12 [*****]or
(b)at the rate of 13 [three per cent.],
whichevercourse would be more beneficial to the revenue:
Providedthat in a case where--
(i)such assets are held 14 [under a trust declared by any person by willand such trust is the only trust so declared by him]; or
15 [(ia)none of the beneficiaries has net wealth exceeding the amount not chargeable towealth-tax in the case of an individual who is a citizen of India and residentin India for the purposes of this Act or is a beneficiary under any other trust;or]
(ii)such assets are held under a trust created before the 1st day of March, 1970, bya non-testamentary instrument and the 4 [Assessing Officer] issatisfied, having regard to all the circumstances existing at the relevant time,that the trust was created bona fideexclusively for the benefit of the relatives of the settlor or where the settloris a Hindu undivided family, exclusively for the benefit of the members of suchfamily, in circumstances where such relatives or members were mainly dependenton 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 bonafide by a person carrying on a business or profession exclusively for thebenefit of persons employed in such business or profession, wealth-taxshall be charged at the rates specified in Part I of 12 [Schedule I]13 [*****]
16 [Explanation 1. - For the purposes of this sub-section, the shares of thepersons on whose behalf or for whose benefit any such assets are held shall bedeemed to be indeterminate or unknown unless the shares of the persons on whosebehalf or for whose benefit such assets are held on the relevant valuation dateare expressly stated in the order of the court or instrument of trust or deed ofwakf, as the case may be, and are ascertainable as such on the date of suchorder, instrument or deed.]
17 [Explanation 18 [2]. - Notwithstanding anything contained in section 5, incomputing the net wealth 19 [for the purposes of this sub-section orsub-section (4A) in any case, not being a case referred to in the proviso tothis sub-section], any assets referred to in clauses (xv), (xvi), (xxii),(xxiii), (xxiv), (xxv), (xxvi), (xxvii), (xxviii) and (xxix), of sub-section (I)of that section shall not be excluded.]
20 [(4A)Notwithstanding anything contained in this section, where the assets chargeableto tax under this Act are held by a trustee under an oral trust, the wealth-taxshall be levied upon and recovered from such trustee in the like manner and tothe same extent as it would be leviable upon and recoverable from an individualwho 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 Schedule I; or
(b)at the rate of three per cent, whichever course would be more beneficial to therevenue.
Explanation.-For the purposes ofthis sub-section, "oral trust" means a trust which is not declared bya duly executed instrument in writing (including a valid deed of wakf) and whichis not deemed under the Explanation to sub-section (1) to be a trust declared bya duly executed instrument in writing.]
21 [(5)]Any person who pays any sum by virtue of the provisions of this section inrespect of the net wealth of any beneficiary shall be entitled to recover thesum so paid from such beneficiary, and may retain out of any assets that he mayhold on behalf or for the benefit of such beneficiary, an amount equal to thesum so paid.
Explanation.-In this section, theterm "beneficiary" means any person including a minor, lunatic oridiot on whose behalf or for whose benefit assets are held by any other person.]
22 [(6)Nothing contained in this section shall apply to and in relation to anyassessment for the assessment year commencing on the 1st day of April, 1993, orany subsequent assessment year.]
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1. Substituted by Act 44 of 1980, sec. 40(a), for "In the case of assetschargeable to tax under this Act" w.e.f. 1-4-1980.
2. Substituted by Act 46 of 1964, sec. 20(a), for "on whose behalf" w.e.f. 1-4-1965.
3.Inserted by Act 16 of 1981, sec. 26(a) w.e.f. 1-4-1981.
4. Substituted by Act 4 of 1988, sec. 127, for "Wealth-tax Officer" w.e.f. 1-4-1988.
5. Inserted by Act 44 of1980, sec. 40(b) w.e.f. 1-4-1980.
6. The words '(all of which persons are hereinafter in this sub-section included in the term "beneficiary")' omitted by Act 46 of 1964, sec. 20(b)(i) w.e.f. 1-4-1965.
7. Substituted by Act 46 of 1964, sec. 20(b)(ii), for "on behalf of such beneficiary" w.e.f. 1-4-1965.
8.Substituted by Act 19 of 1970, sec. 26(e) w.e.f. 1-4-1971.
9. Substituted by Act 16 of 1981, sec. 26(b)(i), for "Notwithstanding anything contained in this section" w.e.f. 1-4-1981.
10. Substituted by Act 44of 1980, sec. 40(c)(i) w.e.f. 1-4-1980.
11. Substituted by Act 66 of 1976, sec. 27(4), for "the Schedule" w.e.f. 1-4-1977.
12. The words "in the case of an individual" omitted by Act 32 of 1971, sec. 34(a) w.e.f. 1-4-1972.
13. Substituted by act 44 of 2980, sec. 40(c)(iv), for "oneand one-half per cent." w.e.f. 1-4-1980.
14. Substituted by Act 44 of 1980, sec. 40(c)(iii)(I), for "under a trust declared by will" w.e.f. 1-4-1980.
15.Inserted by Act 44 of 1980, sec. 40(c)(ii)(2) w.e.f. 1-4-1980.
16.Inserted by Act 44 of 1980, sec. 40(c)(iv) w.e.f. 1-4-1980.
17.Inserted by Act 32 of 1971, sec. 34(b) w.e.f. 1-4-1972.
18.Explanation renumbered asExplanation 2 by Act 44 of 1980,sec. 40(c)(iv) w.e.f. 1-4-1980.
19. Substituted by Act 16of 1981, sec. 26(b)(ii) w.e.f. 1-4-1981.
20.Inserted by Act 16 of 1981, sec. 26(c) w.e.f. 1-4-1981.
21. Inserted by Act 46 of1964, sec. 20(d) w.e.f. 1-4-1965.
22. Inserted by Act 18 of 1992, sec. 94 w.e.f. 1-4-1993.
Section 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, heldunder trust for public charitable or religious purposes
2 [3 [Notwithstanding anything contained in clause (1) ofsection 5, where any property is held] under trust for any public purpose of acharitable or religious nature in India, and
4 [(i)any part of such property or any income of such trust whether derived from suchproperty or from voluntary contributions referred to in sub-clause (iia) ofclause (24) of section 2 of the Income-tax Act, being a trust created on orafter the 1st day of April, 1962 enures, directly or indirectly, for the benefitof any person referred to in sub-section (3) of section 13 of the Income-taxAct, or
(ii)any part of the income of the trust whether derived from such property or fromvoluntary contributions referred to in sub-clause (iia) of clause (24) ofsection 2 of the Income-tax Act, being a trust created on or after the 1st dayof April, 1962 enures, directly or indirectly, for the benefit of any personreferred to in sub-section (3) of section 13 of the said Act, or
(iii)any funds of the trust are invested or deposited, or any shares in a company areheld by the trust, in contravention of the provisions of clause (d) ofsub-section (1) of section 13 of the Income-tax Act]
wealth-laxshall be leviable upon, and recoverable from the trustee or manager (by whatevername called) in the like manner and to the same extent as if the property wereheld by an individual who is a citizen of India and resident in India for thepurposes of'this Act, 5 [*****]:
Providedthat in the case of a trust created before the 1st day of April, 1962, theprovisions of clause (i) shall not apply to any use or application, whetherdirectly or indirectly, of any part of such property or any income of such trustfor the benefit of any person referred to in sub-section (3) of section 13 ofthe Income-tax Act if such use or application is by way of compliance with amandatory term of the trust:
6 [*****]
(a)in the case of any association referred to in clause (21) of section 10 of theIncome-tax Act,--
(1)for the words, brackets, letter and figures "in contravention of theprovisions of clause (d) of sub-section (1) of section 13 of the Income-taxAct," the words, brackets and figures "in contravention of theprovisions contained in the proviso to clause (21) of section 10 of theIncome-tax Act" has been substituted; and
(2)for the words "at the maximum marginal rate", the words and figures"at the rates specified in 9 [sub-section (2) of section 3]"had been substituted;
(b)in the case of any institution, fund or trust referred to in clause (22) orclause (22A) or clause (23B) or clause (23C) of section 10 of the Income-laxAct, the provisions of clauses (i) to (iii) shall not apply.
Explanation.-For the purposes of this section, -
(a)any part of the property or income of a trust shall be deemed to have been usedor applied for the benefit of any person referred to in subsection (3) ofsection 13 of the Income-tax Act in every case in which it can be so deemed tohave been used or applied within the meaning of clause (c) of sub-section (1) ofthat section at any time during the period of twelve months ending with therelevant valuation date;
10 [*****]
(b)"trust" includes any other legal obligation.
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1.Insertedby Act 16 of 1972, sec. 46 w.e.f. 1-4-1973.
2.Substitutedby 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.Substitutedby Act 33 of 1996, sec. 58, for "Where any property is held" w.e.f 1-4-1993.
4.Substitutedby Act 21 of 1984, sec. 39(b)(1) w.e.f. 1-4-1985.
5.Omittedby Act 18 of 1992, sec. 95(b) w.e.f. 1-4-1993.
6.Second Proviso omitted by Act 18 of 1992, sec. 95(c) w.e.f. 1-4-1993.
7.Insertedby Act 21 of 1984, sec. 34(b)(2) w.e.f. 1-4-1985.
8.Substitutedby Act 18 of 1992, sec. 95(d)(i), for "Provided also that".
9.Substitutedby Act 18 of 1992, sec. 95(d)(ii), for "Part I of Schedule I in the case of anindividual" w.e.f. 1-4-1993.
10.Clause (aa) omitted by Act 18 of 1992, sec. 95(E) w.e.f. 1-4-1993.
Section 21AA - Assessment when assets are held by certain associations of persons
1[21AA. Assessment when assets are held by certain associations of persons. -
(1) Where assets chargeable to tax under this Act are held by an association of persons, other than a company or co-operative society2[or society registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India], and the individual shares of the members of the said association in the income or assets or both of the said association on the date of its formation or at any time thereafter are indeterminate or unknown, the wealth-tax shall be levied upon and recovered from such association in the like manner and to the same extent as it would be leviable upon and recoverable from an individual who is a citizen of India and resident in India for the3[purposes of this Act4[*****]]
(2) Where any business or profession carried on by an association of persons referred to in sub-section (1) has been discontinued or where such association of persons is dissolved, the5[Assessing Officer] shall make an assessment of the net wealth of the association of persons as if no such discontinuance or dissolution had taken place and all the provisions of this Act, including the provisions relating to the levy of penalty or any other sum chargeable under any provision of this Act, so far as may be, shall apply to such assessment.
(3) Without prejudice to the generality of the provisions of sub-section (2), if the5[Assessing Officer] or the6[Depuly Commissioner (Appeals)] or the Commissioner (Appeals) in the course of any proceedings under this Act in respect of any such association of persons as is referred to in sub-section (1) is satisfied that the association of persons was guilty of any of the acts specified in section 18 or section 18A, he may impose or direct the imposition of a penalty in accordance with the provisions of the said sections.
(4) Every person who was at the time of such discontinuance or dissolution a member of the association of persons, and the legal representative of any such person who is deceased, shall be jointly and severally liable for the amount of tax, penalty or other sum payable, and all the provisions of this Act, so far as may be, shall apply to any such assessment or imposition of penalty or other sum.
(5) Where such discontinuance or dissolution takes place after any proceedings in respect of an assessment year have commenced, the proceedings may be continued against the persons referred to in sub-section (4) from the stage at which the proceedings stood at the time of such discontinuance or dissolution, and all the provisions of this Act shall, so far as may be, apply accordingly.
7[*****]
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1. Inserted by Act 16 of 1981, sec. 27 w.e.f. 1-4-1981.
2. Inserted by Act 13 of 1989, sec. 29 w.e.f. 1-4-1989.
3. Substituted by Act 4 of 1988, sec. 145 w.e.f. 1-4-1989.
4. The words "and at the maximum marginal rate" omitted by Act 18 of 1992, sec. 96(a) w.e.f. 1-4-1993.
5. Substituted by Act 4 of 1988, sec. 127, for "Wealth-tax Officer" w.e.f. 1-4-1988.
6. Substituted by Act 4 of 1988, sec. 127, for "Appellate Assistant Commissioner" w.e.f. 1-4-1988.
7. Explanation Inserted by Act 16 of 1981, sec. 28 w.e.f. 1-4-1981 omitted by Act, 18 of 1992, sec. 96(6) w.e.f. 1-4-1993.
Section 22 - Assessment of persons residing outside India
(1) Where the person liable to tax under this Act resides outside India, the taxmay be levied upon and recovered from his agent, and the agent shall be deemedto be, for all the purposes of this Act, the assessee in respect of such tax.
(2)Any person employed by or on behalf of a person referred to in sub-section (1)or through whom such person is in the receipt of any income, profits or gains,or who is in possession or has custody of any asset of such person and upon whomthe 1 [Assessing Officer] has caused a notice to be served of hisintention of treating him as the agent of such person shall, for the purposes ofsub-section (1), be deemed to be the agent of such person.
2 [*****]
3 [(3)No person shall be deemed to be the agent of any person residing outside Indiaunless he has had an opportunity of being heard by the 50a[AssessingOfficer] as to his being treated as such.
(4)Any agent, who, as such, pays any sum under this Act, shall be entitled torecover the sum so paid from the person on whose behalf it is paid or to retainout of any moneys that may be in his possession or may come to him in hiscapacity as such agent, an amount equal to the sum so paid.
(5)Any agent, or any person who apprehends that he may be assessed as an agent, mayretain out of money payable by him to the person residing outside India on whosebehalf he is liable to pay tax (hereinafter in this section referred to as theprincipal), a sum equal to his estimated liability under this section, and inthe event of any disagreement between the principal and such agent or person, asto the amount to be so retained, such agent or person may secure from the 4 [Assessing Officer] a certificate staling the amount to be so retained pendingfinal settlement of the liability, and the certificate so obtained shall be hiswarrant for retaining that amount.
(6)The amount recoverable from such agent or person at the time of final settlementshall not exceed the amount specified in such certificate, except to the extentto which such agent or person may at such time have in his hands additionalassets of the principal.
(7)Notwithstanding anything contained in this section, any arrears of tax due froma person residing outside India may be recovered also in accordance with theprovisions of this Act from any assets of such person which are or may at anytime come within India.]
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1. Substituted by Act 4 of 1988, sec.127, for "Wealth-tax Office" w.e.f. 1-4-1988.
2. Proviso omitted by Act46 of 1964, sec. 21(a) w.e.f. 1-4-1965.
3.Inserted by Act 46 of 1964, sec. 21(b) w.e.f. 1-4-1965.
4. Substituted by Act 4 of 1988, sec.127, for "Wealth-tax Office" w.e.f. 1-4-1988.