Treatment of distributed income: distributions carry the trust's tax character to unit holders, trust taxed at top rate. The Chapter treats income distributed by a business trust as being of the same nature and proportion in the hands of the unit holder as it was in the trust; the trust's total income is taxed at the maximum marginal rate while capital gains follow existing capital gains provisions; distributed amounts matching the class under clause (23FC) of section 10 are deemed income of the unit holder and taxed in the previous year; payers must provide prescribed statements to unit holders and the authority.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Treatment of distributed income: distributions carry the trust's tax character to unit holders, trust taxed at top rate.
The Chapter treats income distributed by a business trust as being of the same nature and proportion in the hands of the unit holder as it was in the trust; the trust's total income is taxed at the maximum marginal rate while capital gains follow existing capital gains provisions; distributed amounts matching the class under clause (23FC) of section 10 are deemed income of the unit holder and taxed in the previous year; payers must provide prescribed statements to unit holders and the authority.
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