Death, taxes and childbirth! There’s never any convenient time for any of them.
At first instance, readers might think it weird to use these three words namely, death, taxes and childbirth fit into one grid system of words together. But this is where commerce shows it spark. We commerce students acquire the ability to link things with each other and give a meaning to it.
So as far as these three words are concerned, i can say that they are interconnected. As death is dreaded by every individual, childbirth though it brings happiness but alongwith it comes new responsibilities. So people often try to postpone the two( exceptions are always there). Similarly tax payment is evaded by people. Although they can’t but again the loopholes come into play and give a way to the evaders.
So these three things never find a convenient time but time is great and nevertheless it finds its own convenient way and time to get the things done. So lets start with the
Tax Provisions on Income of Investment Funds and Income Received From such Fund
Investment Funds pool resources from the investors and invest in new companies, social ventures and other areas which government considers as socially or economically desirable. Finance Act 2015 came with the concept of “Investment Funds”
Features of new Taxation Rules
Let understand it with the help of an example:-
Income from other sources – Interest 200 Lakhs
Capital gains 300 Lakhs
The above income are exempt in the hands of Investment funds. If investment funds distributes Rs 500 lakhs to unit holders , then Rs 500 lakhs is taxable in hands of unit holders. Investment fund has to deduct TDS @ 10 % on such distribution.
Suppose, there are 2 unit holders, then Rs 250 lakhs is taxable in hands of each unit holder.
So this is the treatment of tax provisions on income of investment funds and income received from such fund
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