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ITA 2025 · Section 308

Charge_of_tax_in_case_of_oral_trust

Section 308 is the substantive equivalent of 1961 s. 164 A -- the provision dealing with charge of tax in case of oral trust within the special-provisions framework under Chapter XVII. The chapter covers liability frameworks for: legal…

Section 308 — - CHARGE OF TAX IN CASE OF ORAL TRUST

Section 308 is the substantive equivalent of 1961 s. 164A -- the provision dealing with charge of tax in case of oral trust within the special-provisions framework under Chapter XVII. The chapter covers liability frameworks for: legal representatives / representative assessees / oral trusts / AOP/BOI / executor / business succession / HUF partition / NR shipping / persons leaving India / discontinued business / liquidating companies / private company directors / firms / LLPs / and CHARITABLE TRUSTS / NPOs (ss. 332-355). For charitable trusts, the framework is comprehensive: registration / regimes / regular income / specified income / corpus donations / application of income / accumulated income / commercial activities / audit / accreted-income tax / violations.

STATUTORY ARCHITECTURE: Charge of tax in case of oral trust provides legal basis for special-case taxation. The provision integrates with broader tax-administration framework. Practitioner: identify correct provision for fact-pattern; verify procedural compliance; preserve appellate / writ remedies. CHARITABLE TRUST PROVISIONS (ss. 332-355) are particularly significant for non-profit sector compliance -- registration via s. 332 (1961 s. 12A/12AB); tax on regular income s. 334; specified income (anonymous donations etc.) s. 337 / 1961 s. 115BBC at 30%; corpus / accumulation rules; commercial-activities restrictions; accreted-income tax s. 352 / 1961 s. 115TD on conversion / dissolution. FA 2020 / FA 2022 substantially restructured the trust regime.

CROSS-REFERENCES

  • Sections 302-355 -- Chapter XVII framework.
  • Section 270 -- Assessment.
  • Section 263 -- Return of income.
  • Section 393 -- TDS framework.