Tax on distributed income: payers of mutual fund or life insurer distributions must withhold and remit tax promptly.

Tax on distributed income applies to amounts distributed by mutual funds to unit holders and by life insurers to policy holders of approved equity-oriented schemes; the payer must remit tax within fourteen days, the tax is final with no deduction or further credit, non-payment makes the payer an assessee in default subject to recovery provisions, and late payment attracts simple monthly interest. Definitions specify equity-oriented funds and approved equity-oriented life insurance schemes by their predominant equity investments and prescribed approval and computation rules.

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