Section 61: In case of revocable trust, its income needs to be taxed in hands of beneficiaries

From the above extracts of the paper book, which are extracted from the trust deed and the contributor’s agreement, it is evident that the asses­see is not carrying on any business with commercial motive. The benefi­ciaries of the trust are identifiable and the shares are determined by contributor’s agreement and the contributors are free to call upon the trust to cancel any units held by them and return the value. Therefore, the trust is revocable trust and squarely covered by section 61 of Income Tax Act. Accordingly, we hold that trust is a revocable trust and the income derived by th...