Income Tax Act, 2025
Section 4: Ins. by s. 33, ibid. (w.e.f. 12016).
4. Ins. by s. 33, ibid. (w.e.f. 12016).
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(4) The total income of the investment fund shall be charged to tax—
(i) at the rate or rates as specified in the Finance Act of the relevant year, where such fund is a
company or a firm; or
(ii) at maximum marginal rate in any other case.
(5) The provisions of Chapter XIID or Chapter XIIE shall not apply to the income paid by an
investment fund under this Chapter.
(6) The income accruing or arising to, or received by, the investment fund, during a previous year, if
not paid or credited to the person referred to in sub-section (1), shall subject to the provisions of subsection (2), be deemed to have been credited to the account of the said person on the last day of the
previous year in the same proportion in which such person would have been entitled to receive the income
had it been paid in the previous year.
(7) The person responsible for crediting or making payment of the income on behalf of an investment
fund and the investment fund shall furnish, within such time as may be prescribed2, to the person who is
liable to tax in respect of such income and to the prescribed income-tax authority, a statement in the
prescribed form and verified in such manner, giving details of the nature of the income paid or credited
during the previous year and such other relevant details, as may be prescribed.
Explanation 1.—For the purposes of this Chapter,—
(a) “investment fund” means any fund established or incorporated in India in the form of a trust
or a company or a limited liability partnership or a body corporate which has been granted a
certificate of registration as a Category I or a Category II Alternative Investment Fund and is
regulated under the Securities and Exchange Board of India (Alternative Investment Fund)
Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(b) “trust” means a trust established under the Indian Trusts Act, 1882 (2 of 1882) or under any
other law for the time being in force;
(c) “unit” means beneficial interest of an investor in the investment fund or a scheme of the
investment fund and shall include shares or partnership interests.
Explanation 2.—For the removal of doubts, it is hereby declared that any income which has been
included in total income of the person referred to in sub-section (1) in a previous year, on account of it
having accrued or arisen in the said previous year, shall not be included in the total income of such person
in the previous year in which such income is actually paid to him by the investment fund.]
1[CHAPTER XIIG
SPECIAL PROVISIONS RELATING TO INCOME OF SHIPPING COMPANIES
A.—Meaning of certain expressions
The total income of the investment fund shall be charged to tax—
at the rate or rates as specified in the Finance Act of the relevant year, where such fund is a
company or a firm; or
at maximum marginal rate in any other case.
The provisions of Chapter XIID or Chapter XIIE shall not apply to the income paid by an
investment fund under this Chapter.
The income accruing or arising to, or received by, the investment fund, during a previous year, if
not paid or credited to the person referred to in sub-section
The person responsible for crediting or making payment of the income on behalf of an investment
fund and the investment fund shall furnish, within such time as may be prescribed2, to the person who is
liable to tax in respect of such income and to the prescribed income-tax authority, a statement in the
prescribed form and verified in such manner, giving details of the nature of the income paid or credited
during the previous year and such other relevant details, as may be prescribed.
Explanation 1.—For the purposes of this Chapter,—
“investment fund” means any fund established or incorporated in India in the form of a trust
or a company or a limited liability partnership or a body corporate which has been granted a
certificate of registration as a Category I or a Category II Alternative Investment Fund and is
regulated under the Securities and Exchange Board of India (Alternative Investment Fund)
Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992);
“trust” means a trust established under the Indian Trusts Act, 1882 (2 of 1882) or under any
other law for the time being in force;
“unit” means beneficial interest of an investor in the investment fund or a scheme of the
investment fund and shall include shares or partnership interests.
Explanation 2.—For the removal of doubts, it is hereby declared that any income which has been
included in total income of the person referred to in sub-section
in a previous year, on account of it
having accrued or arisen in the said previous year, shall not be included in the total income of such person
in the previous year in which such income is actually paid to him by the investment fund.]
1[CHAPTER XIIG
SPECIAL PROVISIONS RELATING TO INCOME OF SHIPPING COMPANIES
A.—Meaning of certain expressions