Charge of tax in case of oral trust [ Section 164A ] - Income Tax - Ready Reckoner - Income Tax

Charge of tax in case of oral trust [ Section 164A ] oral trust is a trust which is not declared by a duly executed instrument in writing including any wakf deed which is valid under the Mussalman Wakf Validating Act, 1913. As per section 164A where a trustee receives or is entitled to receive any income on behalf or for the benefit of any person under an oral trust will be chargeable to income tax on such income at the maximum marginal rate. Such trust shall be deemed to be a trust declared by a duly executed instrument in writing if a statement in writing, signed by the trustee, setting out the purposes or purposes of the trust, particulars as to the trustee or trustees, the beneficiary or beneficiaries and the trust property, is forwarded to the assessing officer within three months from the date of declaration of the trust.