What is Charge of tax in case of oral trust? What is the
case where part of trust income is chargeable? What is
Direct assessment or recovery not barred? Section 164a, 165 and 166 of Income Tax Act 1961
Charge of tax in case of oral trust, Case where part of
trust income is chargeable and Direct assessment or recovery
not barred are
defined under section 164A, 165 and 166 of Income Tax Act 1961. Provisions under these Sections are
Section 164A of Income Tax Act "Charge of tax in
case of oral trust"
Section 164A. Where a trustee receives or is entitled to
receive any income on behalf or for the benefit of any
person under an oral trust, then, notwithstanding anything
contained in any other provision of this Act, tax shall be
charged on such income at the maximum marginal rate.
Explanation.-For the purposes of this section,-
(ii) "oral trust" shall have the meaning assigned to it in
Explanation 2 below sub-section (1) of section 160.
Section 165 of Income Tax Act "Case where part of
trust income is chargeable"
Section 165. Where part
only of the income of a trust is chargeable under this Act,
that proportion only of the income receivable by a
beneficiary from the trust which the part so chargeable
bears to the whole income of the trust shall be deemed to
have been derived from that part.
Section 166 of Income Tax Act "Direct assessment
or recovery not barred"
Section 166. Nothing in the
foregoing sections in this Chapter shall prevent either the
direct assessment of the person on whose behalf or for whose
benefit income therein referred to is receivable, or the
recovery from such person of the tax payable in respect of