Section 164 of ITA, 1961 : Section 164: Charge Of Tax Where Share Of Beneficiaries Unknown

Explanation using Example

Imagine there is a trust that has been set up by a wealthy individual, Mr. Sharma, for his descendants. The trust deed does not specify the exact share each beneficiary is to receive and instead allows the trustees to decide the distribution of income each year based on the beneficiaries' needs at that time. This trust's income, therefore, has beneficiaries with indeterminate shares.

According to Section 164 of the Income-tax Act, 1961, the income of such a trust,...

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