In force · As amended up to 2026-08
21. Restrictive covenants to be ignored in determining market value.— For the removal of doubts, it is hereby declared that the price or other consideration for which any property may be acquired by or transferred to any person under the terms of a deed of trust or through or under any restrictive covenant in any instrument of transfer shall be ignored for the purposes of determining under any provision of this Schedule, the price such property would fetch if sold in the open market on the valuation date.
1. Subs. by Act 12 of 1990, s. 58, for "clause (b) of" (w.e.f. 1-4-1990).
APPENDIX
[ See rule 17]
Table of ( 1 1) P + d
|Age|nearer|birthday|Premium for unit sum<br>assured||(<br>P|1<br>+ d|1)|
|---|---|---|---|---|---|---|---|
|||||Value<br>per|of life interest of rupee 1<br>annum at 6½% rate of|||
||||||interest|||
||1||2||3|||
||0.||0.02906||10.100|||
||1.||0.01590||11.999|||
||2.||0.01295||12.517|||
||3.||0.01162||12.765|||
||4.||0.01095||12.893|||
||5.||0.01065||12.951|||
||6.||0.01058||12.965|||
||7.||0.01063||12.955|||
||8.||0.01076||12.930|||
||9.||0.01095||12.893|||
||10.||0.01117||12.850|||
||11.||0.01142||12.803|||
||12.||0.01169||12.751|||
||13.||0.01197||12.699|||
||14.||0.01226||12.644|||
||15.||0.01257||12.587|||
||16.||0.01286||12.534|||
||17.||0.01319||12.473|||
==> picture [431 x 680] intentionally omitted <==
----- Start of picture text -----<br>
||||
|---|---|---|
|1|2|3|
|18.|0.01350|12.417|
|19.|0.01387|12.351|
|20.|0.01431|12.273|
|21.|0.01469|12.207|
|22.|0.01512|12.132|
|23.|0.01556|12.057|
|24.|0.01606|11.972|
|25.|0.01656|11.888|
|26.|0.01706|11.806|
|27.|0.01762|11.715|
|28.|0.01825|11.614|
|29.|0.01894|11.505|
|30.|0.01962|11.399|
|31.|0.02037|11.285|
|32.|0.02112|11.173|
|33.|0.02194|11.053|
|34.|0.02281|10.927|
|35.|0.02369|10.804|
|36.|0.02462|10.675|
|37.|0.02562|10.541|
|38.|0.02669|10.400|
|39.|0.02787|10.249|
|40.|0.02912|10.093|
|41.|0.03044|9.932|
|42.|0.03181|9.771|
----- End of picture text -----<br>
==> picture [431 x 680] intentionally omitted <==
----- Start of picture text -----<br>
||||
|---|---|---|
|1|2|3|
|43.|0.03325|9.607|
|44.|0.03475|9.441|
|45.|0.03637|9.267|
|46.|0.03806|9.092|
|47.|0.03987|8.911|
|48.|0.04181|8.724|
|49.|0.04387|8.533|
|50.|0.04612|8.333|
|51.|0.04850|8.130|
|52.|0.05100|7.926|
|53.|0.05362|7.722|
|54.|0.05637|7.518|
|55.|0.05931|7.310|
|56.|0.06244|7.099|
|57.|0.06575|6.888|
|58.|0.06925|6.676|
|59.|0.07294|6.464|
|60.|0.07681|6.255|
|61.|0.08167|6.008|
|62.|0.08589|5.806|
|63.|0.09025|5.610|
|64.|0.09475|5.419|
|65.|0.09938|5.234|
|66.|0.10415|5.054|
|67.|0.10907|4.879|
----- End of picture text -----<br>
|1|2|3|
|---|---|---|
|68.|0.11414|4.709|
|69.|0.11938|4.543|
|70.|0.12483|4.380|
|71.|0.13054|4.220|
|72.|0.13652|4.062|
|73.|0.14278|3.907|
|74.|0.14936|3.753|
|75.|0.15627|3.602|
|76.|0.16356|3.453|
|77.|0.17125|3.305|
|78.|0.17937|3.160|
|79.|0.18796|3.016|
|80.|0.19706|2.875]|
7. Subs. by s. 20, ibid., for "on behalf of such beneficiary" (w.e.f. 1-4-1965).
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).
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.]
Source: India Code