Comparison of section 308 "Charge of tax in case of oral trust." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....tioned in section 303(1)(e)"; the enacted section taxes income received by a trustee on behalf of or for the benefit of any person. Affected parties include trustees, persons appointed under oral trusts, and taxpayers with arrangements characterized as oral trusts. Effective date or commencement is Not stated in the document. Background & Scope Statutory hooks: both texts invoke the Income-tax enactments for 2025 and cross-reference section 303(3) for the definition of "oral trust". The texts fall under the part described as "Representative assesses-Special cases". The Bill (Old Version) and the enacted Section share the objective of addressing tax charge where arrangements amount to oral trusts, but they differ in whom the charge targets....

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....t". The Bill focused on the appointed person's income. Any broader legislative intent, purposive statements, or notes to the legislation are Not stated in the document. Exceptions/Provisos No provisos, exceptions, thresholds, or carve-outs are included in either text. Both are absolute in form-tax at the maximum marginal rate "irrespective of anything contained in any other provision of this Act". Any conditional exemptions or mitigating provisions are Not stated in the document. Illustrations * Example 1: Trustee receives rental income from property held under an oral trust for a beneficiary. Under the enacted Section 308, tax is charged on that income at the maximum marginal rate when the trustee receives or is entitled to receiv....

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....f the arrangement is an oral trust per section 303(3). The Bill version placed the tax charge on the person appointed under an oral trust; the enacted text therefore changes the compliance locus. The documents themselves do not state filing, withholding, or collection procedures-Not stated in the document. * Record-keeping/evidence points: Trustees should maintain clear contemporaneous records documenting receipt/entitlement to income, the nature of the trust arrangement (to establish or rebut classification as an oral trust), and any directives regarding benefit recipients, because the enacted section targets income at the trustee level. Specific documentation requirements are Not stated in the document. * Tax administration: The absol....

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....ment. Differences Between the Provisions and Practical Impact Topic Clause 308 (Bill, Old Version) Section 308 (Enacted) Person on whom tax is charged The income of the person appointed under an oral trust as mentioned in section 303(1)(e) is chargeable to tax at the maximum marginal rate. Where a trustee receives or is entitled to receive any income on behalf or for the benefit of any person under an oral trust, tax shall be charged on such income at the maximum marginal rate. Triggering event Implied charge arises as to the appointed person's income (per appointment u/s 303(1)(e)). Charge arises when a trustee receives or is entitled to receive income under an oral trust. Practical compliance locus Focus on....