Topic

Section 167A Income Tax Act

2 articlesLatest June 2026
Section 167A Income Tax Act | Charitable Trusts Excluded from MMR Taxation If Not Covered Under Section 11: ITAT Delhi
Case Law Analysis
|Income Tax Appellate Tribunal

Section 167A Income Tax Act | Charitable Trusts Excluded from MMR Taxation If Not Covered Under Section 11: ITAT Delhi

ITAT Delhi rules that charitable trusts not claiming benefits under Section 11 are not subject to the Maximum Marginal Rate, even if structured as AOPs, and must be taxed at individual slab rates - affirming CBDT Circular No. 320 of 1982. This clarifies a critical tax liability distinction for non-exempt trusts receiving dividend income, impacting compliance strategies for trusts with substantial passive earnings.

Section 167A Income Tax Act | Charitable Trusts Without Section 11 Exemption Taxed as Individuals, Not AOPs: ITAT Delhi
Case Law Analysis
|Income Tax Appellate Tribunal

Section 167A Income Tax Act | Charitable Trusts Without Section 11 Exemption Taxed as Individuals, Not AOPs: ITAT Delhi

ITAT Delhi holds that charitable trusts not availing exemption under Section 11 of the Income Tax Act must be taxed at individual slab rates, not as Associations of Persons (AOPs) under Section 167A. The ruling clarifies that trusts without defined beneficiaries or members are not AOPs, impacting tax liability calculations for non-exempt charitable entities.

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