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

Section 115UA of Income Tax Act 1961 amended by Finance Act 2022 and Income-tax Rules, 1962. Tax on income of unit holder and business trust.

Amended and updated notes on section 115UA 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 of unit holder and business trust.

Chapter XIIFA (Sections 115UA) of the Income Tax Act 1961 deals with the provisions related to special provisions relating to business trusts. Section 115UA of IT Act 1961-2023 provides for Tax on income of unit holder and business trust.

Recently, we have discussed in detail section 115U (Tax on income in certain cases) of IT Act 1961. Today, we learn the provisions of section 115UA of Income-tax Act 1961. The amended provision of section 115UA 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 115UA 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-115UA: Tax on income of unit holder and business trust

Section 115UA(1) of Income Tax Act

Notwithstanding anything contained in any other provisions of this Act, any income distributed by a business trust to its unit holders shall be deemed to be of the same nature and in the same proportion in the hands of the unit holder as it had been received by, or accrued to, the business trust.

Section 115UA(2) of Income Tax Act

Subject to the provisions of section 111A and section 112, the total income of a business trust shall be charged to tax at the maximum marginal rate.

Section 115UA(3) of Income Tax Act

If in any previous year, the distributed income or any part thereof, received by a unit holder from the business trust is of the nature as referred to in sub-clause (a) of clause (23FC) or clause (23FCA) of section 10, then, such distributed income or part thereof shall be deemed to be income of such unit holder and shall be charged to tax as income of the previous year.

Section 115UA(4) of Income Tax Act

Any person responsible for making payment of the income distributed on behalf of a business trust to a unit holder shall furnish a statement to the unit holder and the prescribed authority, within such time and in such form and manner as may be prescribed, giving the details of the nature of the income paid during the previous year and such other details as may be prescribed.


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