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,-
(i) -
(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 such income.

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