Financial Records : WAQF Council and board

Click here for Powers Of The WAQF ACT, 1955

• The mutawalli of any wakf with a net annual income of not less than five thousand rupees shall pay to the Board, out of the wakf's net annual income, such contributions, not exceeding seven per cent of such annual income, as may be prescribed, for the Board's services to the wakf. I. Explanation.— For the purposes of this Act, "net annual income" refers to the wakf's gross income from all sources, including Mazars and offers that do not contribute to the wakf's corpus, in a given year after deducting the following: 1. the land revenue paid to the Government;

2. the rates, cesses, taxes and licence fees, paid by it to the Government or any local authority;

3. expenditure incurred for all or any of the following purposes,

• expenditure on various repairs to leased houses, not to exceed 5% of the annual rent arising from them, or actual expenditure, whichever is less;

• If the proceeds from the sale of immovable assets or rights relating to or resulting from immovable properties are re-invested to generate income for the wakf: The following receipts, however, will not be considered profits for the purposes of this section.

• The wakf's mutawalli may collect the contributions due him under subsection (1) from the various persons entitled to any pecuniary or other material benefits from the wakf, but the amount collected from any one of them shall not exceed the amount that bears the same proportion to the total contribution due as the value of the benefits due to such person.

• The contribution shall be paid out of any wakf income available in excess of the sum payable as dues under this Act, other than the contribution under sub-section (1), and in excess of the amount payable under the wakf deed.

• The contribution payable under sub-section (1) in respect of a wakf shall be a first charge on the wakf's income and shall be recoverable, subject to the payment of any dues to the Government or any local authority or of any other statutory first charge on the wakf property or income thereof, on a certificate issued by the Board after giving the mutawalli concerned an opportunity to object.

• If a mutawalli realizes the wakf's income and declines or fails to pay the wakf's contribution, he is personally liable for the contribution that may be realized from his person or property in the manner aforesaid.

• After the commencement of this Act, if the mutawalli of a wakf fails to submit a return of the wakf's net annual income within the time specified, or submits a return that, in the opinion of the Chief Executive Officer, is incorrect or false in any material particular, or does not comply with the provisions of this Act or any rule or order made thereunder, the Chief Executive Officer may impose penalties.

• Provided, however, that no assessment of net annual income or revision of a mutawalli's return shall be made unless the mutawalli has been given the notice to show cause, within the time specified in the notice, why such assessment or revision of the return should not be made, and that any such assessment or revision shall be made after considering the mutawalli's reply if any.

• Any mutawalli who is aggrieved by the Chief Executive Officer's assessment or revision made under sub-section (6) can file an appeal with the Board within thirty days of receiving the assessment or revision of return, and the Board can confirm, reverse, or modify the assessment or revision of the return after giving the appellant a fair opportunity to be heard.

• If the contribution or any portion thereof leviable under this section escaped assessment for any reason in any year, whether before or after the commencement of this Act, the Chief Executive Officer may, within five years of the last date of the year to which such escaped assessment relates, serve on the mutawalli a notice assessing him with the contribution or portion thereof which had escaped assessment.

• Regardless of any other law in force at the time, the Chief Executive Officer may, if he believes it is necessary and expedient, issue an order directing any bank in which, or any individual with whom, any money belonging to a waqf is deposited, to pay the contribution, leviable under section 72, out of any money standing to the credit of the waqf.

• Any payment made by a bank or other individual in accordance with an order issued under subsection (1) discharges the bank or other person's liability in relation to the amount so charged fully.

• Any bank or other individual who is ordered to make a payment under subsection (1) may appeal the order to the Tribunal within thirty days of the date of the order, and the Tribunal's decision on the appeal is final.

• Any bank officer or other individual who fails, without fair excuse, to comply with the order made under sub-section (1) or, as the case may be, under sub-section (3) is punishable by imprisonment for a period not exceeding six months or a fine not exceeding eight thousand rupees, or both.