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, held under
trust for public charitable or religious purposes.--2[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--
3[(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 4[any person referred to in sub-section (3)
of section 13 of the Income-tax Act], 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 5
[any
person referred to in sub-section (3) of section 13 of the said Act, or]
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[(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 7
***:]
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 8
[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:
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* * * * *
10
[
11
[Provided further that],--
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[(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 13
[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 14[clauses (i) to
(iii)] shall not apply.]
Explanation.--For the purposes of this section,--
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[(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;
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* * * * *]
(b) "trust" includes any other legal obligation.]
Notes:
1. Ins. by Act 16 of 1972, s. 46 (w.e.f. 1-4-1973).
2. 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).
3. Subs. by Act 21 of 1984, s. 34, for certain words (w.e.f. 1-4-1985).
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. 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).
6. 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).
7. 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).
8. 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).
9. 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).
10. Ins. by Act 21 of 1984, s. 34 (w.e.f. 1-4-1985).
11. Subs. by Act 18 of 1992, s. 95, for "Provided also that" (w.e.f. 1-4-1993).
12. 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).
13. 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).
14. 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).
15. 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).
16. 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).