88[R1] CHAPTER XII-E
Special Provisions Relating to tax on
distributed income
Tax on
distributed income to unit holders.
115R. (1) Notwithstanding anything contained in any other provisions of this Act and section 32 of the Unit Trust of India Act, 1963 (52 of 1963), any amount of income distributed by the Unit Trust of India to its unit holders shall be chargeable to tax and the Unit Trust of India shall be liable to pay additional income-tax on such distributed income at the rate of 89[R2] [ten] per cent :
Provided that
nothing contained in this sub-section shall apply in respect of any income
distributed to a unit holder of open-ended equity oriented funds in respect of
any distribution made from such fund for a period of three years commencing
from the 1st day of April, 1999.
(2) Notwithstanding anything contained in any
other provisions of this Act, any amount of income distributed by a Mutual Fund
to its unit holders shall be chargeable to tax and such Mutual Fund shall be
liable to pay additional income-tax at the rate of 89[R3] [ten] per cent :
Provided that
nothing contained in this sub-section shall apply in respect of any income
distributed to a unit holder of open-ended equity oriented funds in respect of
any distribution made from such fund for a period of three years commencing
from the 1st day of April, 1999.
(3) The person responsible for making payment
of the income distributed by the Unit Trust of India or a Mutual Fund and the
Unit Trust of India or the Mutual Fund, as the case may be, shall be liable to
pay tax to the credit of the Central Government within fourteen days from the
date of distribution or payment of such income, whichever is earlier.
90[R4] [(3A) The person responsible for making payment of the income distributed by the Unit Trust of India or a Mutual Fund and the Unit Trust of India or the Mutual Fund, as the case may be, shall on or before the 15th day of September in each year, furnish to the prescribed income-tax authority91[R5] , a statement in the prescribed form and verified in the prescribed manner, giving the details of the amount of income distributed to unit holders during the previous year, the tax paid thereon and such other relevant details as may be prescribed91[R6] .]
(4) No deduction under any other provision of
this Act shall be allowed to the Unit Trust of India or to a Mutual Fund in
respect of the income which has been charged to tax under sub-section (1) or
sub-section (2).
Interest payable for
non-payment of tax.
115S. Where the person responsible for making payment of the income distributed by the Unit Trust of India or a Mutual Fund and the Unit Trust of India or the Mutual Fund, as the case may be, fails to pay the whole or any part of the tax referred to in sub-section (1) or sub-section (2) of section 115R, within the time allowed under sub-section (3) of that section, he or it shall be liable to pay simple interest at the rate of 91a[R7] [one and 91b[R8] [one-fourth]] per cent every month or part thereof on the amount of such tax for the period beginning on the date immediately after the last date on which such tax was payable and ending with the date on which the tax is actually paid.
Unit trust
of India or mutual fund to be an assessee
in default.
115T. If any person responsible for making payment of the income distributed by the Unit Trust of India or a Mutual Fund and the Unit Trust of India or the Mutual Fund, as the case may be, does not pay tax, as is referred to in sub-section (1) or sub-section (2) of section 115R, then, he or it shall be deemed to be an assessee in default in respect of the amount of tax payable by him or it and all the provisions of this Act for the collection and recovery of income-tax shall apply.
Explanation.—For the
purposes of this Chapter,—
(a) “Mutual Fund” means a Mutual Fund
specified under clause (23D) of
section 10;
(b) “open-ended
equity oriented fund” means—
(i) the Unit
Scheme, 1964 made by the Unit Trust of India; and
(ii) such fund where the investible funds are invested by way of equity shares in
domestic companies to the extent of more than fifty per cent of the total
proceeds of such fund :
Provided that
the percentage of equity share holding of the fund shall be computed with
reference to the annual average of the monthly
averages of the opening and closing figures;
(c) “Unit Trust of India” means the Unit
Trust of India established under the Unit Trust of India Act, 1963 (52 of
1963).]
[R1]Chapter XII-E,
consisting of sections 115R to 115T, inserted by the Finance Act, 1999, w.e.f.
1-6-1999.
[R2]Substituted for “twenty” by the Finance Act, 2001, w.e.f. 1-6-2001. Earlier “twenty” was substituted for “ten” by the Finance Act, 2000, w.e.f. 1-6-2000.
[R3]Substituted for “twenty” by the Finance Act, 2001, w.e.f. 1-6-2001. Earlier “twenty” was substituted for “ten” by the Finance Act, 2000, w.e.f. 1-6-2000.
[R4]Inserted by the Finance Act, 2000, w.e.f. 1-6-2000.
[R5] See rule 12B and Form Nos. 63 & 63A.
[R6] See rule 12B and Form Nos.
63 & 63A.
[R7]Substituted
for “two” by the Finance Act, 2000, w.e.f. 1-6-2000.
[R8]Substituted for “one-half” by the Finance Act, 2001, w.e.f. 1-6-2001.