Section 86 of Income Tax Act "Share of member of an association of persons or body of individuals in the income of the association or body"
86. Where the assessee is a member of an association of persons or body of individuals (other than a company or a co-operative society or a society registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India), income-tax shall not be payable by the assessee in respect of his share in the income of the association or body computed in the manner provided in section 67A :
Provided that,-
(a) where the association or body is chargeable to tax on
its total income at the maximum marginal rate or any higher
rate under any of the provisions of this Act, the share of a
member computed as aforesaid shall not be included in his
total income;
(b) in any other case, the share of a member computed as
aforesaid shall form part of his total income :
Provided further that where no income-tax is chargeable on
the total income of the association or body, the share of a
member computed as aforesaid shall be chargeable to tax as
part of his total income and nothing contained in this
section shall apply to the case.