Income Tax Act, 2025
Section 115UA: Tax on income of unit holder and business trust.—(1) Notwithstanding anything
115UA. Tax on income of unit holder and business trust.—(1) Notwithstanding anything
contained in any other provisions of this Act, any income distributed by a business trust to its unit holders
shall be deemed to be of the same nature and in the same proportion in the hands of the unit holder as it
had been received by, or accrued to, the business trust.
(2) Subject to the provisions of section 111A and section 112, the total income of a business trust
shall be charged to tax at the maximum marginal rate.
(3) If in any previous year, the distributed income or any part thereof, received by a unit holder from
the business trust is of the nature as referred to 2[in sub-clause (a) of clause (23FC)] 3[or clause (23FCA)]
of section 10, then, such distributed income or part thereof shall be deemed to be income of such unit
holder and shall be charged to tax as income of the previous year.
(4) Any person responsible for making payment of the income distributed on behalf of a business
trust to a unit holder shall furnish a statement to the unit holder and the prescribed authority, within such
time and in such form and manner as may be prescribed, giving the details of the nature of the income
paid during the previous year and such other details as may be prescribed.]
4[CHAPTER XIIFB
SPECIAL PROVISIONS RELATING TO TAX ON INCOME OF INVESTMENT FUNDS AND INCOME RECEIVED FROM
SUCH FUNDS
115UB. Tax on income of investment fund and its unit holders.—(1) Notwithstanding anything
contained in any other provisions of this Act and subject to the provisions of this Chapter, any income
accruing or arising to, or received by, a person, being a unit holder of an investment fund, out of
investments made in the investment fund, shall be chargeable to income-tax in the same manner as if it
were the income accruing or arising to, or received by, such person had the investments made by the
investment fund been made directly by him.
(2) Where in any previous year, the net result of computation of total income of the investment fund
[without giving effect to the provisions of clause (23FBA) of section 10] is a loss under any head of
income and such loss cannot be or is not wholly set-off against income under any other head of income of
the said previous year, then,—
(i) such loss shall be allowed to be carried forward and it shall be set-off by the investment fund
in accordance with the provisions of Chapter VI; and
(ii) such loss shall be ignored for the purposes of sub-section (1).
(3) The income paid or credited by the investment fund shall be deemed to be of the same nature and
in the same proportion in the hands of the person referred to in sub-section (1), as if it had been received
by, or had accrued or arisen to, the investment fund during the previous year subject to the provisions of
sub-section (2).
Notwithstanding anything
contained in any other provisions of this Act, any income distributed by a business trust to its unit holders
shall be deemed to be of the same nature and in the same proportion in the hands of the unit holder as it
had been received by, or accrued to, the business trust.
Subject to the provisions of section 111A and section 112, the total income of a business trust
shall be charged to tax at the maximum marginal rate.
If in any previous year, the distributed income or any part thereof, received by a unit holder from
the business trust is of the nature as referred to 2[in sub-clause
of clause
Any person responsible for making payment of the income distributed on behalf of a business
trust to a unit holder shall furnish a statement to the unit holder and the prescribed authority, within such
time and in such form and manner as may be prescribed, giving the details of the nature of the income
paid during the previous year and such other details as may be prescribed.]
4[CHAPTER XIIFB
SPECIAL PROVISIONS RELATING TO TAX ON INCOME OF INVESTMENT FUNDS AND INCOME RECEIVED FROM
SUCH FUNDS
115UB. Tax on income of investment fund and its unit holders.—
Notwithstanding anything
contained in any other provisions of this Act and subject to the provisions of this Chapter, any income
accruing or arising to, or received by, a person, being a unit holder of an investment fund, out of
investments made in the investment fund, shall be chargeable to income-tax in the same manner as if it
were the income accruing or arising to, or received by, such person had the investments made by the
investment fund been made directly by him.
Where in any previous year, the net result of computation of total income of the investment fund
[without giving effect to the provisions of clause
of section 10] is a loss under any head of
income and such loss cannot be or is not wholly set-off against income under any other head of income of
the said previous year, then,—
such loss shall be allowed to be carried forward and it shall be set-off by the investment fund
in accordance with the provisions of Chapter VI; and
such loss shall be ignored for the purposes of sub-section
The income paid or credited by the investment fund shall be deemed to be of the same nature and
in the same proportion in the hands of the person referred to in sub-section