(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.