19. Tax of deceased person payable by legal representative.—(1) Where a person dies, his
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 meeting the charge, the wealth-tax assessed as
payable by such person, or any sum, which would have been payable by him 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 the 2
[Assessing Officer] has reason to believe to be incorrect or
incomplete, the 2
[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.
4
[19A. Assessment in the case of executors.—(1) Subject 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.
1. Subs. by Act 20 of 2002, s. 111, for “for a reference before the High Court or the Supreme Court under section 27 or in appeal
before the Supreme Court under section 29” (w.e.f.1-6-2002).
2. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988).
3. Subs. by s. 127, ibid. for “Appellate Assistant Commissioner” (w.e.f. 1-4-1988).
4. Ins. by Act 46 of 1964, s. 19 (w.e.f. 1-4-1965).
42
(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 that valuation date.
Explanation.—In this section, “executor” includes an administrator or other person administering the
estate of a deceased person.]
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 1
[Assessing Officer] that a partition has taken place among
the members of a Hindu undivided family, and the 1
[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 1
[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.
2
[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. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988).
2. Ins. by Act 44 of 1980, s. 39 (w.e.f. 1-4-1980).
43
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 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, 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 2
[on whose behalf or for whose benefit] the
assets are held, and the provisions of this Act shall apply accordingly.
3
[Explanation.—A trust which is not declared by a duly executed instrument in writing (including a
valid deed of wakf) shall be deemed, for the purposes of this sub-section, to be a trust declared by a duly
executed instrument in writing if a statement in writing, signed by the trustee or trustees, setting out the
purpose or purposes of the trust, particulars as to the trustee or trustees, the beneficiary or beneficiaries
and the trust property, is forwarded to the 4
[Assessing Officer],—
(i) where the trust has been declared before the 1st day of June, 1981, within a period of three
months from that day; and
(ii) in any other case, within three months from the date of declaration of the trust.]
5
[(1A) Where the value or aggregate value of the interest or interests of the person or persons on
whose behalf or for whose benefit such assets are held falls short of the value of any such assets, then, in
addition to the wealth-tax leviable and recoverable under sub-section (1), the wealth-tax shall be levied
upon and recovered from the court of wards, administrator-general, official trustee, receiver, manager or
other person or trustee aforesaid in respect of the value of such assets, to the extent it exceeds the value or
aggregate value of such interest or interests, as if such excess value were the net wealth of an individual
who is a citizen of India and resident in India for the purposes of this 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 the revenue.]
(2) Nothing contained in sub-section (1) shall prevent either the direct assessment of the person 2
[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 6
*** holds any assets
7
[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, of sound mind and
in direct ownership of such assets.
1. Subs. by Act 44 of 1980, s. 40, for “In the case of assets chargeable to tax under this Act” (w.e.f. 1-4-1980).
2. Subs. by Act 46 of 1964, s. 20, for “on whose behalf” (w.e.f. 1-4-1965).
3. Ins. by Act 16 of 1981, s. 26 (w.e.f. 1-4-1981).
4. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988).
5. Ins. by Act 44 of 1980, s. 40 (w.e.f. 1-4-1980).
6. The brackets and words “(all of which persons are hereinafter in this sub-section included in the term “beneficiary”) omitted
by Act 46 of 1964, s. 20 (w.e.f. 1-4-1965).
7. Subs. by s. 20, ibid., for “on behalf of such beneficiary” (w.e.f. 1-4-1965).
44
1
[(4) 2
[Notwithstanding anything contained in the foregoing provisions of 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, administratorgeneral, official trustee, receiver, manager, or other person aforesaid 3
[, as the case may be, 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 the purposes of this Act, and—
(a) at the rates specified in Part I of 4
[Schedule I] 5
***; or
(b) at the rate of 6
[three per cent.],
whichever course would be more beneficial to the revenue:
Provided that in a case where—
(i) such assets are held 7
[under a trust declared by any person by will and such trust is the only
trust so declared by him]; or
8
[(ia) none of the beneficiaries has net wealth exceeding the amount not chargeable to wealth-tax
in the case of an individual who is a citizen of India and resident in 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, by a nontestamentary instrument and the 9
[Assessing Officer] is satisfied, having regard to all the
circumstances existing at the relevant time, that the trust was created bona fide exclusively 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 4
[Schedule I] 5
***.]
8
[Explanation 1.—For the purposes of this sub-section, the shares of the persons on whose behalf or
for whose benefit any such assets are held shall be deemed to be indeterminate or unknown unless the
shares of the persons on whose behalf or for whose benefit such assets are held on the relevant valuation
date are expressly stated in the order of the court or instrument of trust or deed of wakf, as the case may
be, and are ascertainable as such on the date of such order, instrument or deed.]
1. Subs. by Act 19 of 1970, s. 26, for sub-section (4) (w.e.f. 1-4-1971). Earlier it was amended by Act 46 of 1964,
s. 20 (w.e.f. 1-4-1965).
2. Subs. by Act 16 of 1981, s. 26, for “Notwithstanding anything contained in this section” (w.e.f. 1-4-1981).
3. Subs. by Act 44 of 1980, s. 40, for “as if the persons on whose behalf or for whose benefit assets are held were an individual
who is a citizen of India and resident in India” (w.e.f. 1-4-1980).
4. Subs. by Act 66 of 1976, s. 27, for “the Schedule” (w.e.f. 1-4-1977).
5. The words “in the case of an individual” omitted by Act 32 of 1971, s. 34 (w.e.f. 1-4-1972).
6. Subs. by Act 44 of 1980, s. 40, for “one and one-half per cent.” (w.e.f. 1-4-1980).
7. Subs. by s. 40, ibid., for “under a trust declared by him” (w.e.f. 1-4-1980).
8. Ins. by Act s. 40, ibid. (w.e.f. 1-4-1980).
9. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988).
45
1
[
2
[Explanation 2].—Notwithstanding anything contained in section 5, in computing the net
wealth 3
[for the purposes of this sub-section or sub-section (4A) in any case, not being a case referred to
in the proviso to this sub-section], 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.]
4
[(4A) Notwithstanding anything contained in this section, where the assets chargeable to tax under
this Act are held by a trustee under an oral trust, the wealth-tax shall be levied upon and recovered from
such trustee 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 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 the revenue.
Explanation.—For the purposes of this sub-section, “oral trust” means a trust which is not declared
by a duly executed instrument in writing (including a valid deed of wakf) and which is not deemed under
the Explanation to sub-section (1) to be a trust declared by a duly executed instrument in writing.]
5
[(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.]
6
[(6) Nothing contained in this section shall apply to and in relation to any assessment for the
assessment year commencing on the 1st day of April, 1993 or any subsequent assessment year.]
7
[21A. Assessment in cases of diversion of property, or of income from property, held under
trust for public charitable or religious purposes.—8
[Notwithstanding anything contained in clause (i)
of section 5, where any property is held] under trust for any public purpose of a charitable or religious
nature in India and—
9
[(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] is used or applied, directly or indirectly, for the benefit of 10[any person referred to in sub-section (3)
of section 13 of the Income-tax Act], or
1. Ins. by Act 32 of 1971, s. 34 (w.e.f. 1-4-1972).
2. Explanation renumbered as Explanation 2 thereof by Act 44 of 1980, s. 40 (w.e.f. 1-4-1980).
3. Subs. by Act 16 of 1981, s. 26, for “for the purposes of this sub-section in any case, not being a case referred to in the proviso”
(w.e.f. 1-4-1981).
4. Ins. by s. 26, ibid. (w.e.f. 1-4-1981).
5. Ins. by Act 46 of 1964, s. 20 (w.e.f. 1-4-1965).
6. Ins. by Act 18 of 1992, s. 94 (w.e.f. 1-4-1993).
7. Ins. by Act 16 of 1972, s. 46 (w.e.f. 1-4-1973).
8. Subs. by Act 33 of 1996, s. 58, for “Where any property is held” (w.r.e.f. 1-4-1993). Earlier the quoted words were substituted
by Act 18 of 1992, s. 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).
9. Subs. by Act 21 of 1984, s. 34, for certain words (w.e.f. 1-4-1985).
10. Restored by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989). Earlier the words “any interested person” was substituted by Act 4 of
1988, s. 144, for the given expression (w.e.f. 1-4-1989).
46
(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 1
[any
person referred to in sub-section (3) of section 13 of the said Act, or]
2
[(iii) any funds of the trust are invested or deposited, or any shares in a company are held by the
trust, in contravention of the provision of clause (d) of sub-section (1) of section 13 of the Income-tax
Act,]
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 3
***:]
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 4
[any person referred to in sub-section (3) of section 13 of the
Income-tax Act], if such use or application is by way of compliance with a mandatory term of the trust:
5
* * * * *
6
[
7
[Provided further that],—
8
[(a) in the case of any association referred to in clause (21) of section 10 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 modifications that,—
(1) for the words, brackets, letter and figures “in contravention of the provisions of
clause (d) of sub-section (1) of section 13 of the Income-tax Act”, the words, brackets and
figures “in contravention of the provisions contained in the proviso to clause (21) of
section 10 of the Income-tax Act” had 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) or clause (22A) or
clause (23B) or clause (23C) of section 10 of the Income-tax Act, the provisions of 10[clauses (i) to
(iii)] shall not apply.]
1. Restored by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989). Earlier the words “any interested person,” was substituted by Act 4 of 1988,
s. 144, for the given expression (w.e.f. 1-4-1989).
2. Restored by s. 95, ibid. (w.e.f. 1-4-1989). Earlier clause (iii) was omitted by Act 4 of 1988, s. 144 (w.e.f. 1-4-1989).
3. The words “but without excluding the value of any asset under sub-section (1) of section 5, and at the maximum marginal rate”
omitted by Act 18 of 1992, s. 95 (w.e.f. 1-4-1993).
4. Restored by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989). Earlier the words “any interested person” was substituted by Act 4 of 1988,
s. 144, for the given expression (w.e.f. 1-4-1989).
5. The second proviso omitted by Act 18 of 1992, s. 95 (w.e.f. 1-4-1993). Earlier the second proviso was amended by Act 3 of
1989, s. 95 (w.e.f. 1-4-1989) and Act 4 of 1988, s. 144 (w.e.f. 1-4-1989).
6. Ins. by Act 21 of 1984, s. 34 (w.e.f. 1-4-1985).
7. Subs. by Act 18 of 1992, s. 95, for “Provided also that” (w.e.f. 1-4-1993).
8. Restored by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989). Earlier clause (a) was substituted by Act 4 of 1988, s. 144
(w.e.f. 1-4-1989).
9. Subs. by Act 18 of 1992, s. 95, for “Part I of Schedule I in the case of an individual” (w.e.f. 1-4-1993).
10. Restored by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989). Earlier “clauses (i) and (ii)” was substituted by Act 4 of 1988, s. 144, for
the given expression (w.e.f. 1-4-1989).
47
Explanation.—For the purposes of this section,—
1
[(a) any part of the property or income of a trust shall be deemed to have been used or applied
for the benefit of any person referred to in sub-section (3) of section 13 of the Income-tax Act 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 (1) of that section at any time during the period of twelve months ending with the
relevant valuation date;
2
* * * * *]
(b) “trust” includes any other legal obligation.]
3
[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 cooperative society 4
[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 the 5
[purposes of this
Act 6
***].
(2) Where any business or profession carried on by an association of persons referred to in subsection (1) has been discontinued or where such association of persons is dissolved, the 7
[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 provisions 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 the 7
[Assessing Officer]
or the 8
[Deputy 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.
1. Restored by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989). Earlier clause (a) and (ab) was substituted by Act 4 of 1988, s. 144, for
clause (a) and (aa) (w.e.f. 1-4-1989).
2. Clause (aa) omitted by Act 18 of 1992, s. 95 (w.e.f. 1-4-1993). Earlier it was inserted by Act 21 of 1984, s. 34
(w.e.f. 1-4-1985).
3. Ins. by Act 16 of 1981, s. 27 (w.e.f. 1-4-1981).
4. Ins. by Act 13 of 1989, s. 29 (w.e.f. 1-4-1989).
5. Subs. by Act 4 of 1988, s. 145, for certain words (w.e.f. 1-4-1989).
6. The words “, and at the maximum marginal rate” omitted by Act 18 of 1992, s. 96 (w.e.f. 1-4-1993).
7. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988).
8. Subs. by s. 127, ibid., for “Appellate Assistant Commissioner” (w.e.f. 1-4-1988).
48
1
* * * * *]
22. Assessment of persons residing outside India.—(1) Where the person liable to tax under this
Act resides outside India, the tax may be levied upon and recovered from his agent, and the agent shall be
deemed to 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 whom the 2
[Assessing Officer] has caused a notice to be served of his
intention of treating him as the agent of such person shall, for the purposes of sub-section (1), be deemed
to be the agent of such person.
3
* * * * *
4
[(3) No person shall be deemed to be the agent of any person residing outside India unless he has had
an opportunity of being heard by the 2
[Assessing Officer] as to his being treated as such.
(4) Any agent, who, as such, pays any sum under this Act, shall be entitled to recover the sum so paid
from the person on whose behalf it is paid or to retain out of any moneys that may be in his possession or
may come to him in his capacity 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, may retain out of
any money payable by him to the person residing outside India on whose behalf he is liable to pay tax
(hereinafter in this section referred to as the principal), a sum equal to his estimated liability under this
section, and in the event of any disagreement between the principal and such agent or person, as to the
amount to be so retained, such agent or person may secure from the 2
[Assessing Officer] a certificate
stating the amount to be so retained pending final settlement of the liability, and the certificate so
obtained shall be his warrant for retaining that amount.
(6) The amount recoverable from such agent or person at the time of final settlement shall not exceed
the amount specified in such certificate, except to the extent to which such agent or person may at such
time have in his hands additional assets of the principal.
(7) Notwithstanding anything contained in this section, any arrears of tax due from a person residing
outside India may be recovered also in accordance with the provisions of this Act from any assets of such
person which are or may at any time come within India.]