Income Tax Act, 2025
Section 2: Ins. by Act 32 of 2003, s. 68 (w.e.f. 12004).
2. Ins. by Act 32 of 2003, s. 68 (w.e.f. 12004).
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1[164. Charge of tax where share of beneficiaries unknown.—2[(1) Subject to the provisions of
sub-sections (2) and (3), where] any income in respect of which the persons mentioned in clauses (iii) and
(iv) of sub-section (1) of section 160 are liable as representative assessees or any part thereof is not
specifically receivable on behalf or for the benefit of any one person or where the individual shares of the
persons on whose behalf or for whose benefit such income or such part thereof is receivable are
indeterminate or unknown (such income, such part of the income and such persons being hereafter in this
section referred to as “relevant income”, “part of relevant income” and “beneficiaries”, respectively),
3[tax shall be charged on the relevant income or part of relevant income at the maximum marginal rate]:
Provided that in a case where—
4[(i) none of the beneficiaries has any other income chargeable under this Act exceeding the
maximum amount not chargeable to tax in the case of an 5[association of persons] or is a beneficiary
under any other trust; or]
(ii) the relevant income or part of relevant income is receivable 6[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 or part of relevant income is receivable under a trust created before the
1st day of March, 1970, by a non-testamentary instrument and the 7[Assessing Officer] is satisfied,
having regard to all the circumstances existing at the relevant time, that the trust 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; or
(iv) the relevant income is receivable by the trustees on behalf of a provident fund,
superannuation fund, gratuity fund, pension fund or any other fund created bona fide by a person
carrying on a business or profession exclusively for the benefit of persons employed in such business
or profession,
tax shall be charged 8[on the relevant income or part of relevant income as if it] were the total income of
an 5[association of persons]:]
9[Provided further that where any income in respect of which the person mentioned in clause (iv) of
sub-section (1) of section 160 is liable as representative assessee consists of, or includes, profits and gains
of business, the preceding proviso shall apply only if such profits and gains are receivable under a trust
declared by any person by will exclusively for the benefit of any relative dependent on him for support
and maintenance, and such trust is the only trust so declared by him.]
Subject to the provisions of
sub-sections
and
and
of sub-section
of section 160 are liable as representative assessees or any part thereof is not
specifically receivable on behalf or for the benefit of any one person or where the individual shares of the
persons on whose behalf or for whose benefit such income or such part thereof is receivable are
indeterminate or unknown (such income, such part of the income and such persons being hereafter in this
section referred to as “relevant income”, “part of relevant income” and “beneficiaries”, respectively),
3[tax shall be charged on the relevant income or part of relevant income at the maximum marginal rate]:
Provided that in a case where—
4[
none of the beneficiaries has any other income chargeable under this Act exceeding the
maximum amount not chargeable to tax in the case of an 5[association of persons] or is a beneficiary
under any other trust; or]
the relevant income or part of relevant income is receivable 6[under a trust declared by any
person by will and such trust is the only trust so declared by him]; or
the relevant income or part of relevant income is receivable under a trust created before the
1st day of March, 1970, by a non-testamentary instrument and the 7[Assessing Officer] is satisfied,
having regard to all the circumstances existing at the relevant time, that the trust 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; or
the relevant income is receivable by the trustees on behalf of a provident fund,
superannuation fund, gratuity fund, pension fund or any other fund created bona fide by a person
carrying on a business or profession exclusively for the benefit of persons employed in such business
or profession,
tax shall be charged 8[on the relevant income or part of relevant income as if it] were the total income of
an 5[association of persons]:]
9[Provided further that where any income in respect of which the person mentioned in clause
of
sub-section
of section 160 is liable as representative assessee consists of, or includes, profits and gains
of business, the preceding proviso shall apply only if such profits and gains are receivable under a trust
declared by any person by will exclusively for the benefit of any relative dependent on him for support
and maintenance, and such trust is the only trust so declared by him.]