Amended and updated notes on section 165 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 Case where part of trust income is chargeable.
Chapter XV (Sections 159 to 180A) of the Income Tax Act 1961 deals with the provisions related to liability in special cases. Section 165 of IT Act 1961 provides for Case where part of trust income is chargeable.
Recently, we have discussed in detail section 164A (Charge of tax in case of oral trust) of IT Act 1961. Today, we learn the provisions of section 165 of Income-tax Act 1961. The amended provision of section 165 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 165 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-165: Case where part of trust income is chargeable
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.