Unit Trust of India Act,1963
Act No : 52
Section :
Income-tax and other taxes.
32. Income-tax and other taxes. (1) Notwithstanding anything contained in 1*[the Wealth tax Act, 1957 (27 of 1957)], the Income- tax Act, 1961 (43 of 1961), the Super Profits Tax Act, 1963 (14 of 1963) 2*[the Companies (Profits) Surtax Act, 1964 (7 of 1964),] or in any other enactment for the time being in force relating to income- tax, super-tax, 3*[super profits tax, surtax] or any other tax on income, profits or gains- (a) the Trust shall not be liable to pay income-tax, super- tax, super profits tax 2*[, surtax] or any other tax in respect of any income, profits or gains derived by it from any source; 4*[(aa)in the case of an assessee who is not resident in India, being,- (i) an individual who is an Indian or a person of Indian origin, or (ii) a Hindu undivided family, there shall not be included in the total income of such assessee, for the purposes of the Income-tax Act, 1961 (43 of 1961), any income received by such assessee in the previous year in respect of units acquired by such assessee from the Trust, out of funds in a Non-resident (External) Account maintained with any bank in India or by the remittance of funds in foreign exchange, in accordance, in either case, with the provisions of the Foreign Exchange Regulation Act, 1973 (46 of 1973), or any rules or orders made thereunder;] 7* * * * * ---------------------------------------------------------------------- 1. Ins. by Act 16 of 1975, s. 6 (w.e.f. 1-4-1975). 2. Ins. by Act 17 of 1966, s. 10 (w.e.f. 1-4-1964, vide Act 20 of 1967, s. 45). 3. Subs. by s. 10, ibid., for "or super profits tax" (w.e.f. 1-4- 1964, vide Act 20 of 1967, s. 45). 4. Ins. by Act 3 of 1976, s. 2 (w.e.f. 24-1-1976). 5. Omitted by Act 21 of 1984, s. 54 (w.e.f. 1-4-1985) 160F 1* * * * * 2*[(bb)in the case of an assessee who is not resident in India, being, an individual who is an Indian or a person of Indian origin, or a Hindu undivided family, wealth-tax shall not be payable by the assessee in respect of, and there shall not be included in, the net wealth of the assessee computed under the Wealth-tax Act, 1957 (27 of 1957), the value of the assets in the form of units acquired from the Trust, out of funds in a Non-resident (External) Account maintained with any bank in India or by the remittance of funds in foreign exchange, in accordance, in ---------------------------------------------------------------------- 1. Explanation omitted by Act 3 of 1976, s. 2 (w.e.f. 24.1.1976). 2. Ins. by s. 2, ibid. (w.e.f. 24.1.1976). 160G either case, with the provisions of the Foreign Exchange Regulation Act, 1973 (46 of 1973), or any rules or orders made thereunder;] (c) where a contributing institution is liable to be assessed to super profits tax under the Super Profits Tax Act, 1963 (14 of 1963), 1*[or to surtax under the Companies (Profits) Surtax Act, 1964 (7 of 1964),] in respect of its own income, profits or gains and receives any sum from the Trust under this Act in respect of its contribution to the initial capital, such sum as reduced by the amount of any income-tax and super-tax payable in respect thereof shall be excluded from the total income of the said institution in computing its chargeable profits for the purposes of super profits tax 1*[or surtax]. 2*[Explanation I.--In this sub-section,- (a) in [clause (aa)]3* the expressions "previous year" and "total income" shall have the meanings, respectively, assigned to them in the Income-tax Act, 1961 (43 of 1961); (b) in [clause (bb)]3* the expressions "assessee" and "net wealth" shall have the meanings, respectively, assigned to them in the Wealth-tax Act, 1957 (27 of 1957). Explanation II.--For the purposes of sub-sections (1) and (2),- (a) an assessee shall be deemed to be "not resident in India" if he is a non-resident within the meaning of clause (30) of section 2 of the Income-tax Act, 1961 (43 of 1961); (b) a person shall be deemed to be a person of Indian origin if he or either of his parents or any of his grand parents howsoever high in degree of ascent, whether on the paternal side or on the maternal side, was born in India, as defined in the Government of India Act, 1935, as originally enacted.] (2) Notwithstanding anything contained in section 193 or section 194 of the Income-tax Act, 1961 (43 of 1961),-- (a) no deduction of income-tax or super-tax shall be made on any interest or dividend payable to the Trust in ---------------------------------------------------------------------- 1. Ins. by Act 17 of 1966, s. 10 (w.e.f. 1-4-1964, vide Act 20 of 1967, s. 45). 2. Ins. by Act 3 of 1976, s. 2 (w.e.f. 24.1.1976). 3. Subs. by Act 21 of 1984, s. 54 (w.e.f. 1-4-1985). 160H respect of any securities or shares owned by it or in which it has full beneficial interest 1* * * (b) no deduction of income-tax shall be made by the Trust from the income distributed by it to a unit holder being an individual 2*[who is resident; and] 3*[(c)where in the case of a unit holder, being an individual who is not resident in India, the income in respect of units receivable by him from the Trust during the financial year- (i) does not exceed 4*5*[seven thousand rupees] deduction of income-tax shall be made by the Trust from the income distributed to him; (ii) exceeds 4*[seven thousand rupees]5* income- tax shall be made by the Trust from the whole of the income distributed to him at the rate of fifteen per cent. of such income:] 6*[Provided that no deduction of income-tax shall be made by the Trust, where the units in respect of which income is distributed to- (i) an individual who is an Indian or a person of Indian origin, or (ii) a Hindu undivided family, not resident in India, have been acquired from the Trust, out of funds in a Non-resident (External) Account maintained with any bank in India or by the remittance of funds in foreign exchange, in accordance, in either case, with the provisions of the Foreign Exchange Regulation Act, 1973 (46 of 1973), or any rules or orders made thereunder.] (3) Subject to the foregoing sub-sections, for the purposes of the Income-tax Act, 1961 (43 of 1961),-- (a) any distribution of income received by a unit holder from the Trust shall be deemed to be his income by way of dividends; and ---------------------------------------------------------------------- 1. The word "and" omitted by Act 10 of 1965, s. 73 (w.e.f. 1-4- 1965). 2. Ins. by s. 73, ibid. (w.e.f. 1-4-1965). 3. Subs. by Act 13 of 1966, s. 53 for cl. (c) (w.e.f. 1-4-1966). 4. Subs. by Act 16 of 1975, s. 6, for "three thousand rupees" (w.e.f. 1.4.1975). 5. Subs. by Act 14 of 1982, s. 56 (w.e.f. 1.6.1982). 6. Ins. by Act 3 of 1976, s. 2 (w.e.f. 24.1.1976). 160I (b) the Trust shall be deemed to be a company.
