Case where part of trust income is chargeable [ Section 165 ] - Income Tax - Ready Reckoner - Income Tax

Case where part of trust income is chargeable [ Section 165 ] Where part only of the income of a trust is chargeable under this Act, that proportion only of the income receivable by a beneficiary from the trust which the part so chargeable bears to the whole income of the trust shall be deemed to have been derived from that part. In other words, where a part only of the trust income is chargeable to tax under this act, the beneficiaries share of the income should be taken to be that derived proportionately from the chargeable and non-chargeable portions of the trust income.