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

Section 115T of Income Tax Act amended by Finance Act and Income-tax Rules. Unit Trust of India or Mutual Fund to be an assessee in default.

Amended and updated notes on section 115T 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 Unit Trust of India or Mutual Fund to be an assessee in default.

Chapter XIIE(Sections 115R to 115T) of the Income Tax Act 1961 deals with the provisions related to special provisions relating to tax on distributed income. Section 115T of IT Act 1961-2023 provides for Unit Trust of India or Mutual Fund to be an assessee in default.

Recently, we have discussed in detail section 115S (Interest payable for non-payment of tax) of IT Act 1961. Today, we learn the provisions of section 115T of Income-tax Act 1961. The amended provision of section 115T 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 115T 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-115T: Unit Trust of India or Mutual Fund to be an assessee in default

If any person responsible for making payment of the income distributed by the specified company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002) or a Mutual Fund and the specified company or the Mutual Fund, as the case may be, does not pay tax, as is referred to in sub-section (1) or sub-section (2) of section 115R, then, he or it shall be deemed to be an assessee in default in respect of the amount of tax payable by him or it and all the provisions of this Act for the collection and recovery of income-tax shall apply.

Explanation: For the purposes of this Chapter,—

(a) “Mutual Fund” means a Mutual Fund specified under clause (23D) of section 10;

(b) “equity oriented fund” means a fund referred to in clause (a) of the Explanation to section 112A and the Unit Scheme, 1964 made by the Unit Trust of India;

(c) “Unit Trust of India” means the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963);

(d) “money market mutual fund” means a money market mutual fund as defined in sub-clause (p) of clause (2) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996;

(e) “liquid fund” means a scheme or plan of a mutual fund which is classified by the Securities and Exchange Board of India as a liquid fund in accordance with the guidelines issued by it in this behalf under the Securities and Exchange Board of India Act, 1992 (15 of 1992) or regulations made thereunder.


Open Demat Account

For Investing or Trading

(Best Investing and Trading Platform in India)

Learn More