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What is When company is deemed to be assessee in default Tax on distributed income to unit holders? Section 115QC and 115R of Income Tax Act 1961

When company is deemed to be assessee in default Tax on distributed income to unit holders are defined under sections 115QC and 115R of Income Tax Act 1961. Provisions under these Sections are :

Section 115C of Income Tax Act "When company is deemed to be assessee in default"

Section 115QC. If any principal officer of a domestic company and the company does not pay tax on distributed income in accordance with the provisions of section 115QA, 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.

 

Section 115C of Income Tax Act "Tax on distributed income to unit holders"

Section 115R. (1) Notwithstanding anything contained in any other provisions of this Act and section 32 of the Unit Trust of India Act, 1963 (52 of 1963), any amount of income distributed on or before the 31st day of March, 2002 by the Unit Trust of India to its unit holders shall be chargeable to tax and the Unit Trust of India shall be liable to pay additional income-tax on such distributed income at the rate of ten per cent :

Provided that nothing contained in this sub-section shall apply in respect of any income distributed to a unit holder of open-ended equity oriented funds in respect of any distribution made from such fund for a period of three years commencing from the 1st day of April, 1999.
(2) Notwithstanding anything contained in any other provision of this Act, any amount of income distributed by the specified company or a Mutual Fund to its unit holders shall be chargeable to tax and such specified company or Mutual Fund shall be liable to pay additional income-tax on such distributed income at the rate of-

(i) twenty-five per cent on income distributed to any person being an individual or a Hindu undivided family by a money market mutual fund or a liquid fund;

(ia) thirty per cent on income distributed to any other person by a money market mutual fund or a liquid fund;

(ii) [twenty-five] per cent on income distributed to any person being an individual or a Hindu undivided family by a fund other than a money market mutual fund or a liquid fund; and

(iii) thirty per cent on income distributed to any other person by a fund other than a money market mutual fund or a liquid fund:

[Provided that where any income is distributed by a mutual fund under an infrastructure debt fund scheme to a non-resident (not being a company) or a foreign company, the mutual fund shall be liable to pay additional income-tax at the rate of five per cent on income so distributed:]

Provided [further] that nothing contained in this sub-section shall apply in respect of any income distributed,-

(a) by the Administrator of the specified undertaking, to the unit holders; or
(b) to a unit holder of equity oriented funds in respect of any distribution made from such funds.
89[Explanation.-For the purposes of this sub-section,-
(i) "administrator" and "specified company" shall have the meanings respectively assigned to them in the Explanation to clause (35) of section 10;
(ii) "infrastructure debt fund scheme" shall have the same meaning as assigned to it in clause (1) of regulation 49L of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992).
90[(2A) For the purposes of determining the additional income-tax payable in accordance with sub-section (2), the amount of distributed income referred therein shall be increased to such amount as would, after reduction of the additional income-tax on such increased amount at the rate specified in sub-section (2), be equal to the amount of income distributed by the Mutual Fund.]
(3) The person responsible for making payment of the income distributed by the Unit Trust of India or a Mutual Fund and the Unit Trust of India or the Mutual Fund, as the case may be, shall be liable to pay tax to the credit of the Central Government within fourteen days from the date of distribution or payment of such income, whichever is earlier.
(3A) -
(4) No deduction under any other provision of this Act shall be allowed to the Unit Trust of India or to a Mutual Fund in respect of the income which has been charged to tax under sub-section (1) or sub-section (2).

Income Tax Act 1961

What is Conversion of an Indian branch of foreign company into subsidiary Indian company? Section 115JG of Income Tax Act 1961

What is Interest payable for non-payment of tax by domestic companies? When company is deemed to be in default? Section 115P and 115Q of Income Tax Act 1961

What is Tax on distributed income to shareholders Interest payable for non-payment of tax by company? Section 115QA and 115QB of Income Tax Act 1961

What is When company is deemed to be assessee in default Tax on distributed income to unit holders? Section 115QC and 115R of Income Tax Act 1961

What is Interest payable for non-payment of tax? What is the meaning of Unit Trust of India or Mutual Fund to be an assessee in default? Section 115S and 115T of Income Tax Act 1961

What is Tax on distributed income to investors? What is Interest payable for non-payment of tax? Section 115TA and 115TB of Income Tax Act 1961

What is Securitisation trust to be assessee in default? What is Tax on income in certain cases? Section 115TC and 115U of Income Tax Act 1961

What is Tax on income of unit holder and business trust? What  is Tax on income of investment fund and its unit holders? Section 115UA and 115UB of Income Tax Act 1961

What are Definitions? What is Relevant shipping income? Section 115V and 115V I of Income Tax Act 1961

What is Exclusion from provisions of section 115JB? What is Computation of profits and gains from the business of operating qualifying ships? Section 115VO and 115VA of Income Tax Act 1961

What is Operating ships? What is Qualifying company? Section 115VB and 115VC of Income Tax Act 1961

What is Qualifying ship? What is Manner of computation of income under tonnage tax scheme? Section 115VD and 115VE of Income Tax Act 1961

What is Tonnage income? What is Computation of tonnage income? Section 115VF and 115VG of Income Tax Act 1961

What is Calculation in case of joint operation, etc? What is Treatment of common costs? Section 115VH and 115VJ of Income Tax Act 1961

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