Section 115TF of Income Tax Act for AY 2023-24

Section 115TF of Income Tax Act amended by Finance Act 2022 and Income-tax Rules. When trust or institution is deemed to be assessee in default.

Amended and updated notes on section 115TF of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to When trust or institution is deemed to be assessee in default.

Chapter XIIEB (Sections 115TD to 115TF) of the Income Tax Act 1961 deals with the provisions related to special provisions relating to tax on accreted income of certain trusts and institutions. Section 115TF of IT Act 1961-2022 provides for When trust or institution is deemed to be assessee in default.

Recently, we have discussed in detail section 115TE (Interest payable for non-payment of tax by trust or institution) of IT Act 1961.

Today, we learn the provisions of section 115TF of Income-tax Act 1961 as amended by the Finance Act 2022. The amended provision of section 115TF is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 115TF of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.

Section-115TF: When specified person is deemed to be assessee in default

Section 115TF (1):

If any principal officer or the trustee of the specified person and the specified person does not pay tax on accreted income in accordance with the provisions of section 115TD, then, he or it shall be deemed to be an assessee in default in respect of the amount of tax payable by him or it and all the provisions of this Act for the collection and recovery of income-tax shall apply.

[Sub-section (1) of Section 115TF amended (substituted) w.e.f. 1-April-2023 by the Finance Act 2022]

Section 115TF (2):

Notwithstanding anything contained in sub-section (1), in a case where the tax on accreted income is payable under the circumstances referred to in clause (c) of sub-section (1) of section 115TD, the person to whom any asset forming part of the computation of accreted income under sub-section (2) thereof has been transferred, shall be deemed to be an assessee in default in respect of such tax and interest thereon and all the provisions of this Act for the collection and recovery of income-tax shall apply:

Provided that the liability of the person referred to in this sub-section shall be limited to the extent to which the asset received by him is capable of meeting the liability.

Explanation: For the purposes of this section, “specified person” shall have the same meaning as assigned to in clause (iia) of the Explanation to section 115TD.

[Explanation in section 115TF inserted w.e.f. 1-April-2023 by the finance Act 2022]


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