Legal ownership of the trust property vests in the trustees. - Income Tax - 913/CBDT

INSTRUCTION NO. 913/CBDT Dated : January 16, 1976 Section(s) Referred: 5(1)(iv) Statute: Wealth Tax Act, 1957 A question has been raised whether exemption in respect of house property u/s 5(1)(iv) of the Wealth-tax Act, 1957 is allowable in respect of the interest of a beneficiary of a trust being a life tenant in the house property. The Board have been advised that in the case of a trust, generally the legal ownership of the trust property vests in the trustees. Therefore, it can be said that the trust property does not belong to the beneficiary and so exemption u/s 5(1)(iv) is not allowable in respect of the assessee's life interest in that trust property.