Taxation of investment fund income treated as if held directly by unit holders, changing allocation and reporting obligations. Section 115UB treats income accruing or received by unit holders of registered Category I or II Alternative Investment Funds as if the investments were held directly by those unit holders, with income retaining its nature and proportion in their hands. Fund-level losses (excluding clause (23FBA) effects) remain with the fund and may be carried forward under Chapter VI rather than passed through. Unpaid accrued income is deemed credited to unit holders at year-end in their entitlement proportions, funds and payors must file prescribed statements, and Chapters XII-D and XII-E do not apply to income taxed under this Chapter.