Section 115BBB of Income Tax Act for AY 2023-24

Section 115BBB of Income Tax Act 1961. Tax on income from units of an open-ended equity oriented fund of UTI or of Mutual Funds.

Amended and updated notes on section 115BBB of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to tax on income from units of an open-ended equity oriented fund of the Unit Trust of India or of Mutual Funds.

Chapter XII (Sections 110 to 115BBG) of the Income Tax Act 1961 deals with the provisions related to determination of tax in certain special cases. Section 115BBB of IT Act 1961-2023 provides for tax on income from units of an open-ended equity oriented fund of the Unit Trust of India or of Mutual Funds.

Recently, we have discussed in detail section 115BBA (Tax on non-resident sportsmen or sports associations) of IT Act 1961. Today, we learn the provisions of section 115BBB of Income-tax Act 1961. The amended provision of section 115BBB is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 115BBB of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.

Section-115BBB: Tax on income from units of an open-ended equity oriented fund of the Unit Trust of India or of Mutual Funds

Section 115BBB(1) of Income Tax Act

Where the total income of an assessee includes any income from units of an open-ended equity oriented fund of the Unit Trust of India or of a Mutual Fund, the income-tax payable shall be the aggregate of—

  • (a) the amount of income-tax calculated on income from units of an open-ended equity oriented fund of the Unit Trust of India or of a Mutual Fund, at the rate of ten per cent; and
  • (b) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (a).

Section 115BBB(2) of Income Tax Act

Nothing contained in sub-section (1) shall apply in relation to any income from units of an open-ended equity oriented fund of the Unit Trust of India or of the Mutual Fund arising after the 31st day of March, 2003.

Explanation: For the purposes of this section, the expressions “Mutual Fund”, “open-ended equity oriented fund” and “Unit Trust of India” shall have the meanings respectively assigned to them in the Explanation to section 115T.


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