Income Tax Act, 2025
Section 1: Subs. by Act 23 of 2004, s. 19, for the Explanation (w.e.f. 12005).
1. Subs. by Act 23 of 2004, s. 19, for the Explanation (w.e.f. 12005).
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CHAPTER VI-B
RESTRICTION ON CERTAIN DEDUCTIONS IN THE CASE OF COMPANIES
[Chapter VI-B, omitted by the Finance Act, 1987 (11 of 1987), s. 40 (w.e.f. 11988). Original
Chapter was inserted by the Finance Act, 1983 (11 of 1983), s. 32 (w.e.f. 11984) and amended by the
Finance Act, 1985, (w.e.f. 11986) and Finance Act, 1986 (32 of 1985), s. 25(w.e.f. 11987).]
CHAPTER VII
INCOMES FORMING PART OF TOTAL INCOME ON WHICH NO INCOME-TAX IS PAYABLE
81. to 85C. Omitted by the Finance (No. 2) Act, 1967 (20 of 1967), s. 33 and the Third Schedule
(w.e.f. 11968). Provisions of sections 81, 82, 83, 84, 85, 85A, 85B and 85C were incorporated from
the same date in sections 80P, 80Q, 10(29), 80J (now omitted), 80K (now omitted), 80M (now omitted),
80N (now omitted) and 80-O, respectively.
1[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.]
86A. [Deduction from tax on certain securities.] Omitted by the Finance Act, 1988 (26 of 1988), s. 28
(w.e.f. 11989). Original section was inserted by the Finance Act, 1965 (10 of 1985), s. 22
(w.e.f. 11965).
CHAPTER VIII
2[REBATES AND RELIEFS]
3[A.—Rebate of income-tax]
87. Rebate to be allowed in computing income-tax.—(1) In computing the amount of income-tax
on the total income of an assessee with which he is chargeable for any assessment year, there shall be
allowed from the amount of income-tax (as computed before allowing the deductions under this Chapter),
in accordance with and subject to the provisions of 4[5[sections 87A, 88], 88A, 88B, 88C, 88D and 88E],
the deductions specified in those sections.
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;
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.]
86A. [Deduction from tax on certain securities.] Omitted by the Finance Act, 1988 (26 of 1988), s. 28
(w.e.f. 11989). Original section was inserted by the Finance Act, 1965 (10 of 1985), s. 22
(w.e.f. 11965).
CHAPTER VIII
2[REBATES AND RELIEFS]
3[A.—Rebate of income-tax]
87. Rebate to be allowed in computing income-tax.—
In computing the amount of income-tax
on the total income of an assessee with which he is chargeable for any assessment year, there shall be
allowed from the amount of income-tax (as computed before allowing the deductions under this Chapter),
in accordance with and subject to the provisions of 4[5[sections 87A, 88], 88A, 88B, 88C, 88D and 88E],
the deductions specified in those sections.