Section 40 - Amendment of section 21 - Finance (No. 2) Act, 1980

40. Amendment of section 21 In section 21 of the Wealth-tax Act, - (a) in sub-section (1), for the words In the case of assets chargeable to tax under this Act , the words, brackets, figure and letter Subject to the provisions of sub-section (1A), in the case of assets chargeable to tax under this Act shall be substituted; (b) after sub-section (1), the following sub-section shall be inserted, namely :- (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 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. ; (c) in sub-section (4), - (i) for the portion beginning with the words as if the persons and ending with the words resident in India , the following shall be substituted, namely :- , 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 Indian and resident in Indian ; (ii) in clause (b), for the words one and one-half per cent. , words three per cent. shall be substituted; (iii) in the proviso, - (1) in clause (i), for the words under a trust declared by will , the words under a trust declared by any person by will and such trust is the only trust so declared by him shall be substituted; (2) after clause (i), the following clause shall be inserted, namely :- (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 an resident in India for the purposes of this Act or is a beneficiary under any other trust; or ; (iv) the Explanation shall be numbered as Explanation 2 and before that Explanation, the following Explanation shall be inserted, namely :- 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 deed of wakf, as the case may be, and are ascertainable as such on the date of such order, instrument or deed. .