Income Tax Act, 2025
Section 9: Ins. by Act 21 of 1984, s. 21 (w.e.f. 11985).
9. Ins. by Act 21 of 1984, s. 21 (w.e.f. 11985).
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1[(2) In the case of relevant income which is derived from property held under trust wholly for
charitable or religious purposes, 2[or which is of the nature referred to in sub-clause (iia) of clause (24)
of section 2, 3[or which is of the nature referred to in sub-section (4A) of section 11,] tax shall be charged
on so much of the relevant income as is not exempt under section 11 or section 12], as if the relevant
income not so exempt were the income of an association of persons:
4[Provided that in a case where the whole or any part of the relevant income is not exempt
under section 11 or section 12 by virtue of the provisions contained in clause (c) or clause (d) of subsection (1) of section 13, tax shall be charged [on the relevant income or part of relevant income at the
maximum marginal rate.]]
(3) 5[In a case where the relevant income is derived from property held under trust in part only for
charitable or religious purposes or is of the nature referred to in sub-clause (iia) of clause (24) of section
2] 3[or is of thenature referred to in sub-section (4A) of section 11,] and either the relevant income
applicable to purposes other than charitable or religious purposes (or any part thereof) 6[is not specifically
receivable on behalf or for the benefit of any one person or the individual shares of the beneficiaries in the
income so applicable are indeterminate or unknown, the tax chargeable on the relevant income shall be
the aggregate of—
(a) the tax which would be chargeable on that part of the relevant income which is applicable to
charitable or religious purposes (as reduced by the income, if any, which is exempt under section 11)
as if such part (or such part as so reduced) were the total income of an association of persons; and
(b) the tax on that part of the relevant income which is applicable to purposes other than
charitable or religious purposes, and which is either not specifically receivable on behalf or for the
benefit of any one person or in respect of which the shares of the beneficiaries are indeterminate or
unknown, at the maximum marginal rate:]
Provided that in a case where—
7[(i) none of the beneficiaries in respect of the part of the relevant income which is not
applicable to charitable or religious purposes has any other income chargeable under this Act
exceeding the maximum amount not chargeable to tax in the case of an association of persons or
is a beneficiary under any other trust; or]
(ii) the relevant income is receivable 8[under a trust declared by any person by will and such
trust is the only trust so declared by him]; or
(iii) the relevant income is receivable under a trust created before the 1st day of March, 1970,
by a non-testamentary instrument and the 9[Assessing Officer] is satisfied, having regard to all the
circumstances existing at the relevant time, that the trust, to the extent it is not for charitable or
religious purposes, was created bona fide exclusively for the benefit of the relatives of the settlor,
or where the settlor is a Hindu undivided family, exclusively for the benefit of the members of
such family, in circumstances where such relatives or members were mainly dependent on the
settlor for their support and maintenance,
1. Restored by Act 3 of 1989, s. 95 (w.e.f. 11989). Earlier sub-section (2) and (3) were omitted by Act 4 of 1988,
s. 64 (w.e.f. 11989).
2. Subs. by Act 16 of 1972, s. 27, for “tax shall be charged on so much of the relevant income as is not exempt under section
11” (w.e.f. 11973).
In the case of relevant income which is derived from property held under trust wholly for
charitable or religious purposes, 2[or which is of the nature referred to in sub-clause
of clause
of section 2, 3[or which is of the nature referred to in sub-section
of section 11,] tax shall be charged
on so much of the relevant income as is not exempt under section 11 or section 12], as if the relevant
income not so exempt were the income of an association of persons:
4[Provided that in a case where the whole or any part of the relevant income is not exempt
under section 11 or section 12 by virtue of the provisions contained in clause
or clause
of subsection
of section 13, tax shall be charged [on the relevant income or part of relevant income at the
maximum marginal rate.]]
5[In a case where the relevant income is derived from property held under trust in part only for
charitable or religious purposes or is of the nature referred to in sub-clause
of clause
of section
2] 3[or is of thenature referred to in sub-section
of section 11,] and either the relevant income
applicable to purposes other than charitable or religious purposes (or any part thereof) 6[is not specifically
receivable on behalf or for the benefit of any one person or the individual shares of the beneficiaries in the
income so applicable are indeterminate or unknown, the tax chargeable on the relevant income shall be
the aggregate of—
the tax which would be chargeable on that part of the relevant income which is applicable to
charitable or religious purposes (as reduced by the income, if any, which is exempt under section 11)
as if such part (or such part as so reduced) were the total income of an association of persons; and
the tax on that part of the relevant income which is applicable to purposes other than
charitable or religious purposes, and which is either not specifically receivable on behalf or for the
benefit of any one person or in respect of which the shares of the beneficiaries are indeterminate or
unknown, at the maximum marginal rate:]
Provided that in a case where—
7[
none of the beneficiaries in respect of the part of the relevant income which is not
applicable to charitable or religious purposes has any other income chargeable under this Act
exceeding the maximum amount not chargeable to tax in the case of an association of persons or
is a beneficiary under any other trust; or]
the relevant income is receivable 8[under a trust declared by any person by will and such
trust is the only trust so declared by him]; or
the relevant income is receivable under a trust created before the 1st day of March, 1970,
by a non-testamentary instrument and the 9[Assessing Officer] is satisfied, having regard to all the
circumstances existing at the relevant time, that the trust, to the extent it is not for charitable or
religious purposes, was created bona fide exclusively for the benefit of the relatives of the settlor,
or where the settlor is a Hindu undivided family, exclusively for the benefit of the members of
such family, in circumstances where such relatives or members were mainly dependent on the
settlor for their support and maintenance,
1. Restored by Act 3 of 1989, s. 95 (w.e.f. 11989). Earlier sub-section
and
were omitted by Act 4 of 1988,
s. 64 (w.e.f. 11989).
2. Subs. by Act 16 of 1972, s. 27, for “tax shall be charged on so much of the relevant income as is not exempt under section
11” (w.e.f. 11973).