Income-tax Act,1961
Act No : 43
Section :
Share of member of an association of persons or body of individuals in the income of the association or body
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 ---------------------------------------------------------------------- 1 Substituted by the Finance, Act, 1992, w.e.f. 1-4-1993. Prior to the substitution, section 86, as amended by the Finance Act, 1964, w.e.f. 1-4-1964; Finance Act, 1965, w.e.f. 1-4-1965; Finance Act, 1968, w.e.f. 1-4-1969; Finance (No. 2) Act, 1971, w.e.f. 1-4-1971; and the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, read as under: "86. Other incomes.-Income-tax shall not be payable by an assessee in respect of the following- [(i) * * *] ----------------------------------------------------------------------- 1.433 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 ----------------------------------------------------------------------- -> -> [(ii) * * *] (iii) if the assessee is a partner of an unregistered firm (not being an unregistered firm assessed as a registered firm under clause (b) of section 183), any portion of the assessee's share in the profits and gains of the firm computed in the manner laid down in section 67 on which income-tax is payable by the firm; [(iv) * * *] *[(v) if the assessee is a member of an association of persons or a 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), 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.] *Clause (v), prior to the substitution by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, as originally enacted and amended by the Finance Act, 1981, w.e.f. 1-4-1981, read as under: "(v) if the assessee is a member of an association of persons, or a body of individuals other than a Hindu undivided family, a company or a firm, any portion of the amount which he is entitled to receive from the association or body on which income-tax has already been paid by the association or body. Explanation.-For the purposes of this clause, in the case of an association of persons which is assessable under section 167A, each of the members of the association whose shares in the income or, as the case may be, part of the income of such association are indeterminate or unknown, shall be deemed to be entitled to receive an equal share in the total income or, as the case may be, such part of the total income of the association and the individual share of such member in such total income or, as the case may be, part of the total income shall be determined accordingly." ------------------------------------------------------------------------ 1.434 aforesaid shall be chargeable to tax as part of his total income and nothing contained in this section shall apply to the case.] 1[86A. Deduction from tax on certain securities.-Omitted by the Finance Act, 1988, w.e.f. 1-4-1989. It was inserted by the Finance Act, 1965, w.e.f 1-4-1965.] ----------------------------------------------------------------------- 1 Prior to the omission, section 86A, as amended by the Finance Act, 1966, w.e.f. 1-4-1966, read as under: "86A. Deduction from tax on certain securities.-Where there is included in the total income of an assessee- (i) the interest due on any security of the Central Government issued or declared to be income-tax free, or (ii) the interest due on any security of a State Government issued income-tax free, the income-tax whereon is payable by the State Government, the assessee shall be entitled to a deduction from the amount of income-tax with which he is chargeable on his total income, of an amount equal to the income-tax calculated on the amount so included at the average rate of income-tax or at the rate of twenty-seven and a half per cent, whichever is less." 1.435
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