Amendment status not verified — confirm the current text below against the official source.
(1) The trustee or administrator of every trust or endowment, the net annual income of which is not less than ten thousand rupees, shall pay annually, out of the net annual income derived by the trust or endowment, such contributions, not exceeding ten per cent of such annual income, as may be prescribed, to the Board for the services rendered by such Board to the trust or endowment. Explanation I. - For the purposes of this Act, “net annual income” shall mean the gross income of the trust or endowment, from all sources, including donations which do not amount to contribution to the corpus of the trust or endowment in a year, after deducting therefrom the following, namely:- (i) the land revenue paid by it to the Government; (ii) the charges, taxes and licence fees, paid by it; (iii) expenditure incurred for all or any of the following purposes, namely:- (a) maintenance of, or repairs to, irrigation works, which shall not include the capital cost of irrigation; (b) seeds or seedlings; (c) manure; (d) purchase and maintenance of agricultural implements; (e) purchase and maintenance of cattle for cultivation; (f) wages for ploughing, watering, sowing, transplanting, harvesting, threshing and other agricultural operations: Provided that the total deduction in respect of all expenditure incurred under this clause shall not exceed twenty-five per cent of the income derived from lands belonging to the trust or endowment; (iv) expenditure on sundry repairs to rented buildings, not exceeding ten per cent of the annual rent derived therefrom, or the actual expenditure, whichever is less; (v) sale proceeds of immovable properties or rights relating to, or arising out of, immovable properties, if such proceeds are re-invested to earn income for the trust or endowment: Provided that the following items of receipts shall not be deemed to be income for the purposes of this section, namely:- (a) advances and deposits recovered and loans taken or recovered; (b) deposits made as security by employees, lessees or contractors and other deposits, if any; (c) withdrawals from banks or of investment; (d) amounts recovered towards costs awarded by Courts; (e) donations in cash or kind made by the donors as contributions to the corpus of the trust and endowment: Provided that the interest on income, if any, accruing from such donations shall be taken into account in calculating the gross annual income; (f) voluntary contributions received in cash or kind for a specified service to be performed by the trust and endowment, and expended on such service; (g) audit recoveries. Explanation II. - In determining the net annual income for the purposes of this section, only the net profit derived by any trust or endowment, from its remunerative undertaking, if any, shall be taken as income, and in respect of its non-remunerative undertakings, such as, schools, colleges, hospitals, poor homes, orphanages or any other similar institutions, the grants given by the Government or any local authority or donations received from the public or fees collected from the pupils of educational institutions shall not be taken as income. (2) The trustee or administrator of a trust or endowment, may realize the contributions payable by him under sub-section (1) from the various persons entitled to receive any pecuniary or other material benefit from the trust or endowment, but the sum realizable from any one of such persons shall not exceed such amount as shall bear to the total contribution payable the same proportion, as the value of the benefits receivable by such person bears to the entire net annual income of the trust or endowment: Provided that if there is any income of the trust or endowment, available in excess of the amount payable as dues under this Act, other than the contribution under sub-section (1), and in excess of the amount payable under the deed of such trust and endowment, the contribution shall be paid out of such income. (3) The contribution payable under sub-section (1) in respect of a trust or endowment, shall, subject to the prior payment of any dues to the Government or any local authority or of any other statutory first charge on the property of trust or endowment, or the income thereof and shall be recoverable, on a certificate issued by the Board after giving the trustee or administrator concerned an opportunity of being heard, as an arrear of land revenue. (4) If a trustee and administrator realizes the income of the trust or endowment and refuses to pay or does not pay such contribution he shall also be personally liable for such contribution which may be realized from his person or property in the manner aforesaid. (5) Where, after the commencement of this Act, the trustee of a trust or administrator of the endowment, fails to submit a return of the net annual income of the trust or endowment, within the time specified therefor or submits a return which, in the opinion of the Chief Administrative Officer is incorrect or false in any material particular, or which does not comply with the provisions of this Act or any rule or order made thereunder, the Chief Administrative Officer may assess the net annual income of the trust and endowment, to the best of his judgment or revise the net annual income as shown in the return submitted by the trustee and administrator and the net annual income as so assessed or revised shall be deemed to be the net annual income of the trust or endowment, for the purposes of this section: Provided that no assessment of net annual income or revision of return submitted by trustee or administrator shall be made except after giving a notice to the trustee or administrator calling upon him to show cause, within the time specified in the notice, as to why such assessment or revision of the return shall not be made and every such assessment or revision shall be made after considering the reply, if any, given by the trustee or administrator. (6) Any trustee or administrator who is aggrieved by the assessment or revision made by the Chief Administrative Officer under sub-section (5) may prefer an appeal to the Board within thirty days from the date of the receipt of the assessment or revision of return and the Board may, after giving the appellant a reasonable opportunity of being heard, confirm, reverse or modify the assessment or revision of the return and the decision of the Board thereon shall be final. (7) If, for any reason, the contribution or any portion thereof leviable under this section has escaped assessment in any year, whether before or after the commencement of this Act, the Chief Administrative Officer may, within five years from the last date of the year to which such escaped assessment relates serve upon the trustee or administrator a notice assessing him with the contribution or portion thereof which had escaped assessment, and demanding payment thereof within thirty days from the date of service of such notice, and the provisions of this Act and the rules made thereunder, shall, as far as may be, apply as if the assessment were made under this Act, in the first instance.