Section 115QC of Income Tax Act "When company is deemed to be assessee in default"
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.
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
94[on or before the 31st day of March, 2020] 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;
(ii) thirty per cent on income distributed to any other
person by a money market mutual fund or a liquid fund;
(iii) ten per cent on income distributed to any person by an
equity oriented fund;
(iv) 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
or an equity oriented fund; and
(v) thirty per cent on income distributed to any other
person by a fund other than a money market mutual fund or a
liquid fund or an equity oriented 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) [***] :
95[Provided also that no additional income-tax shall be
chargeable in respect of any amount of income distributed on
or after the 1st day of September, 2019 by a specified
Mutual Fund, out of its income derived from transactions
made on a recognised stock exchange located in any
International Financial Services Centre and where the
consideration for such transaction is paid or payable in
convertible foreign exchange.]
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;
95[(ia) "convertible foreign exchange" means foreign
exchange which is for the time being treated by the Reserve
Bank of India as convertible foreign exchange for the
purposes of the Foreign Exchange Management Act, 1999 (42 of
1999) and the rules made thereunder;]
(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).]
95[(iii) "International Financial Services Centre" shall
have the meaning assigned to it in clause (q) of section 2
of the Special Economic Zones Act, 2005 (28 of 2005);
(iv) "recognised stock exchange" shall have the meaning
assigned to it in clause (ii) of Explanation 1 to clause (5)
of section 43;
(v) "specified Mutual Fund" means a Mutual Fund specified
under clause (23D) of section 10-
(a) located in any International Financial Services Centre;
(b) of which all the units are held by non-residents;
(vi) "unit" means beneficial interest of an investor in the
fund.]
(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).