Section 86 of Income Tax Act for AY 2023-24

Section 86 of Income Tax Act 1961 amended by Finance Act and Income-tax Rules. Share of member of AOP or BOI in income of association or body.

Amended and updated notes on section 86 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 share of member of an association of persons or body of individuals in the income of the association or body.

Chapter VII (Section 86) of the Income Tax Act 1961 deals with the provisions related to incomes forming part of total income on which no income-tax is payable. Section 86 of IT Act 1961-2023 provides for share of member of an association of persons or body of individuals in the income of the association or body.

Recently, we have discussed in detail section 80U (Deduction in case of a person with disability) of IT Act 1961. Today, we learn the provisions of section 86 of Income-tax Act 1961. The amended provision of section 86 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 86 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-86: Share of member of an association of persons or body of individuals in the income of the association or body

Where the assessee is a member of an association of persons or body of individuals (other than a company or a co-operative society or a society registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India), income-tax shall not be payable by the assessee in respect of his share in the income of the association or body computed in the manner provided in section 67A:

Provided that,—

  • (a) where the association or body is chargeable to tax on its total income at the maximum marginal rate or any higher rate under any of the provisions of this Act, the share of a member computed as aforesaid shall not be included in his total income;
  • (b) in any other case, the share of a member computed as aforesaid shall form part of his total income :

Provided further that where no income-tax is chargeable on the total income of the association or body, the share of a member computed as aforesaid shall be chargeable to tax as part of his total income and nothing contained in this section shall apply to the case.


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