Amended and updated notes on section 65 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 Liability of person in respect of income included in the income of another person.
Chapter V (Sections 60 to 65) of the Income Tax Act 1961 deals with the provisions related to Income of other persons included in assessee’s total income. Section 65 of IT Act 1961-2023 provides for Liability of person in respect of income included in the income of another person.
Recently, we have discussed in detail section 64 (income of individual to include income of spouse, minor child, etc.) of IT Act 1961. Today, we learn the provisions of section 65 of Income-tax Act 1961. The amended provision of section 65 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 65 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-65: Liability of person in respect of income included in the income of another person
Where, by reason of the provisions contained in this Chapter or in clause (i) of section 27, the income from any asset or from membership in a firm of a person other than the assessee is included in the total income of the assessee, the person in whose name such asset stands or who is a member of the firm shall, notwithstanding anything to the contrary contained in any other law for the time being in force, be liable, on the service of a notice of demand by the Assessing Officer in this behalf, to pay that portion of the tax levied on the assessee which is attributable to the income so included, and the provisions of Chapter XVII-D shall, so far as may be, apply accordingly :
Provided that where any such asset is held jointly by more than one person, they shall be jointly and severally liable to pay the tax which is attributable to the income from the assets so included.