Section 115UB of ITA, 1961 : Section 115Ub: Tax On Income Of Investment Fund And Its Unit Holders

Explanation using Example

Imagine Sarah invests in an Alternative Investment Fund (AIF) which is a type of investment fund regulated by the Securities and Exchange Board of India (SEBI). The AIF invests in various assets and generates income from these investments. According to Section 115UB of the Income-tax Act, 1961, any income that the AIF earns and passes on to Sarah will be taxed as if Sarah had earned that income directly from the investments.

For instance, if the AIF makes a profit from selling stocks and allocates a portion of that profit to Sarah, she will have to pay tax ...

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