Investment fund unit income not chargeable to tax is excluded from tax deduction at source for recipients.

No deduction of tax at source applies to income in respect of units of an Investment Fund where the income payable to the unit holder is not chargeable to tax under the Income-tax Act, 2025. Although such distributed income is ordinarily subject to TDS, the withholding obligation arises only for income chargeable to tax in the hands of the recipient.

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