Income Tax Act, 1961
Section 9: Ins. by Act 21 of 1979, s. 9 (w.e.f. 11980).
9. Ins. by Act 21 of 1979, s. 9 (w.e.f. 11980).
314
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 1[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.
CHAPTER VI
AGGREGATION OF INCOME AND SET OFF OR CARRY FORWARD OF LOSS
Aggregation of income
66. Total income.—In computing the total income of an assessee, there shall be included all income
on which no income-tax is payable under Chapter VII2***.
67. [Method of computing a partner’s share in the income of the firm.] Omitted by the Finance
Act, 1992, (18 of 1992), s. 36 (w.e.f. 11993). Earlier amended by Act 19 of 1968, s. 30 and the Third
Schedule (w.e.f. 11969), Act 32 of 1971, s. 13 (w.e.f. 11971), subs. by Act 4 of 1988, s. 18 (w.e.f. 11988) or restored by Act 3 of 1989, s. 95 (w.e.f. 11989).
3[67A. Method of computing a member's share in income of association of persons or body of
individuals.—(1) In computing the total income of an assessee who is a member of an association of
persons or a body of individuals wherein the shares of the members are determinate and known [other
than a company or a cooperative 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], whether the net
result of the computation of the total income of such association or body is a profit or a loss, his share
(whether a net profit or net loss) shall be computed as follows, namely:—
(a) any interest, salary, bonus, commission or remuneration by whatever name called, paid to any
member in respect of the previous year shall be deducted from the total income of the association or
body and the balance ascertained and apportioned among the members in the proportions in which
they are entitled to share in the income of the association or body;
(b) where the amount apportioned to a member under clause (a) is a profit, any interest, salary,
bonus, commission or remuneration aforesaid paid to the member by the association or body in
respect of the previous year shall be added to that amount, and the result shall be treated as the
member's share in the income of the association or body;
(c) where the amount apportioned to a member under clause (a) is a loss, any interest, salary,
bonus, commission or remuneration aforesaid paid to the member by the association or body in
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 1[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.
CHAPTER VI
AGGREGATION OF INCOME AND SET OFF OR CARRY FORWARD OF LOSS
Aggregation of income
66. Total income.—In computing the total income of an assessee, there shall be included all income
on which no income-tax is payable under Chapter VII2***.
67. [Method of computing a partner’s share in the income of the firm.] Omitted by the Finance
Act, 1992, (18 of 1992), s. 36 (w.e.f. 11993). Earlier amended by Act 19 of 1968, s. 30 and the Third
Schedule (w.e.f. 11969), Act 32 of 1971, s. 13 (w.e.f. 11971), subs. by Act 4 of 1988, s. 18 (w.e.f. 11988) or restored by Act 3 of 1989, s. 95 (w.e.f. 11989).
3[67A. Method of computing a member's share in income of association of persons or body of
individuals.—
In computing the total income of an assessee who is a member of an association of
persons or a body of individuals wherein the shares of the members are determinate and known [other
than a company or a cooperative 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], whether the net
result of the computation of the total income of such association or body is a profit or a loss, his share
(whether a net profit or net loss) shall be computed as follows, namely:—
any interest, salary, bonus, commission or remuneration by whatever name called, paid to any
member in respect of the previous year shall be deducted from the total income of the association or
body and the balance ascertained and apportioned among the members in the proportions in which
they are entitled to share in the income of the association or body;
where the amount apportioned to a member under clause
is a profit, any interest, salary,
bonus, commission or remuneration aforesaid paid to the member by the association or body in
respect of the previous year shall be added to that amount, and the result shall be treated as the
member's share in the income of the association or body;
where the amount apportioned to a member under clause
is a loss, any interest, salary,
bonus, commission or remuneration aforesaid paid to the member by the association or body in