Income from Revocable Trust Taxable in Settlor’s Hands, Not Trust: ITAT Grants Relief Under...

The ITAT (Income Tax Appellate Tribunal) has granted relief under the "India-UAE DTAA (Double Taxation Avoidance Agreement)," ruling that "income from a revocable trust is taxable in the settlor's hands, not the trust." This decision clarifies the taxability of income generated from trusts that can be revoked by the settlor. Under the DTAA, the income is attributed to the individual who retains control over the trust's assets, preventing double taxation and ensuring that the income is taxed where the actual economic ownership lies, as per international tax principles.