Income Tax Act 2025: Section 308 for Tax Year 2025-26

Income from an oral trust appointee (per Section 303(1)(e)) is taxed at the maximum marginal rate under Section 308(1) of the Income Tax Act 2025.

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Charge of tax in case of oral trust

[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

Section 308(1) of Income Tax Act 2025

(1) The income of the person appointed under an oral trust as mentioned in section 303(1)(e) shall be chargeable to tax at the maximum marginal rate, irrespective of anything contained in any other provision of this Act.

Section 308(2) of Income Tax Act 2025

(2) For the purposes of this section, “oral trust” shall have the meaning assigned to it in section 303(3).


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