Income Tax Act, 2025
Section 115QC: When company is deemed to be assessee in default.—If any principal officer of a
115QC. When company is deemed to be assessee in default.—If any principal officer of a
domestic company and the company does not pay tax on distributed income in accordance with the
provisions of section 115QA, 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.]
1[CHAPTER XIIE
SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME
115R. Tax on distributed income to unit holders.—(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), 2[any
amount of income distributed on or before the 31st day of March, 2002 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 3[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.
4[(2) Notwithstanding anything contained in any other provision of this Act, any amount of income
distributed by the specified company or a Mutual Fund to its unit holders shall be chargeable to tax and
such specified company or Mutual Fund shall be liable to pay additional income-tax on such distributed
income 5[at the rate of—
6[(i) twenty-five per cent. on income distributed to any person being an individual or a Hindu
undivided family by a money market mutual fund or a liquid fund;
(ii) thirty per cent. on income distributed to any other person by a money market mutual fund or a
liquid fund;
(iii) ten per cent. on income distributed to any person by an equity oriented fund;
(iv) twenty-five per cent. on income distributed to any person being an individual or a Hindu
undivided family by a fund other than a money market mutual fund or a liquid fund or an equity
oriented fund; and
(v) thirty per cent. on income distributed to any other person by a fund other than a money market
mutual fund or a liquid fund or an equity oriented fund:]
Notwithstanding anything contained in any
other provisions of this Act and section 32 of the Unit Trust of India Act, 1963 (52 of 1963), 2[any
amount of income distributed on or before the 31st day of March, 2002 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 3[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.
4[
Notwithstanding anything contained in any other provision of this Act, any amount of income
distributed by the specified company or a Mutual Fund to its unit holders shall be chargeable to tax and
such specified company or Mutual Fund shall be liable to pay additional income-tax on such distributed
income 5[at the rate of—
6[
twenty-five per cent. on income distributed to any person being an individual or a Hindu
undivided family by a money market mutual fund or a liquid fund;
thirty per cent. on income distributed to any other person by a money market mutual fund or a
liquid fund;
ten per cent. on income distributed to any person by an equity oriented fund;
twenty-five per cent. on income distributed to any person being an individual or a Hindu
undivided family by a fund other than a money market mutual fund or a liquid fund or an equity
oriented fund; and
thirty per cent. on income distributed to any other person by a fund other than a money market
mutual fund or a liquid fund or an equity oriented fund:]