Section 164A of Income Tax Act for AY 2023-24

Section 164A of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Charge of tax in case of oral trust.

Amended and updated notes on section 164A 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 Charge of tax in case of oral trust.

Chapter XV (Sections 159 to 180A) of the Income Tax Act 1961 deals with the provisions related to liability in special cases. Section 164A of IT Act 1961 provides for Charge of tax in case of oral trust.

Recently, we have discussed in detail section 164 (Charge of tax where share of beneficiaries unknown) of IT Act 1961. Today, we learn the provisions of section 164A of Income-tax Act 1961. The amended provision of section 164A 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 164A of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-164A: Charge of tax in case of oral trust

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) [Omitted]

(ii) “oral trust” shall have the meaning assigned to it in Explanation 2 below sub-section (1) of section 160.


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