Tax on distributed income imposed on mutual funds and UTI, creating payment and compliance obligations for distributions. Chapter XII-E charges tax on income distributed by mutual funds and the Unit Trust of India, making the distributing entity liable to pay additional income-tax; distributions by open-ended equity oriented funds are temporarily exempt for a prescribed three-year period. The distributing person and the fund must remit tax to the Central Government within a short statutory period; the taxed income is not deductible. Interest accrues on unpaid tax at a monthly rate and non-payment renders the distributor an assessee in default subject to collection and recovery provisions. Definitions specify mutual fund and open-ended equity oriented fund criteria.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax on distributed income imposed on mutual funds and UTI, creating payment and compliance obligations for distributions.
Chapter XII-E charges tax on income distributed by mutual funds and the Unit Trust of India, making the distributing entity liable to pay additional income-tax; distributions by open-ended equity oriented funds are temporarily exempt for a prescribed three-year period. The distributing person and the fund must remit tax to the Central Government within a short statutory period; the taxed income is not deductible. Interest accrues on unpaid tax at a monthly rate and non-payment renders the distributor an assessee in default subject to collection and recovery provisions. Definitions specify mutual fund and open-ended equity oriented fund criteria.
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