Section 27

The statutory income of an executor shall be the income of the estate administered by such executor for the year preceding the year of assessment:

Provided that any income of the estate received by, distributed to, or applied to the benefit of, any beneficiary of the estate during the year preceding the year of assessment shall be deducted.

The statutory income for any year of assessment of any beneficiary of the estate of a deceased person administered by an executor shall include the amount of the income received by or distributed to him or applied to his benefit out of the estate during the year preceding that year of assessment (otherwise than as the capital amount or any part of the capital amount of his interest in the estate).