4[Assessment in cases of diversion of
property, or of income from property, held under trust for public charitable or
religious purposes.
21A. 5[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—
6[(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 7[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 7[any person referred to in sub-section (3) of section 13 of
the said Act, or]
8[(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 9[***] :
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 10[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 :
11[Omitted by the Finance Act, 1992, w.e.f.
1-4-1993.]
12[Provided
13[further] that,—
14[(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 15[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 16[clauses (i) to
(iii)] shall not apply.]
Explanation.—For the purposes of this section,—
16[(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 ;
17(aa) [Omitted
by the Finance Act, 1992, w.e.f. 1-4-1993.]
(b) “trust” includes any other legal obligation.]