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Annual Information Statement: Income on account of repurchase of units by MF/ UTI



'Annual Information Statement' and 'Taxpayer Information Summary' are two new tools recently made available by the Income Tax Department to the taxpayers. The main objective of the 'Annual Information Statement' is to provide comprehensive tax information to the taxpayer and also to promote voluntary compliance as well as seamless prefiling of the income tax return (ITR).

'Annual Information Statement' is divided into two parts-

1. Part A contains general information like PAN; Aadhaar number; name; date of birth or incorporation; mobile number; e-mail address and address of the taxpayer;

2. Part B contains information relating to TDS and TCS; taxes paid; demand and refund; specified financial transactions; pending and completed proceedings and other information.

One of the information categories covered under Part B of AIS is 'Income on account of repurchase of units by MF/ UTI' which is taken up and explained in the current article.

Income tax provisions relating to 'Income on account of repurchase of units by Mutual Fund/ Unit Trust India

As per provisions of section 80CCB(2) of the Income Tax Act, income will be taxable if all the following conditions are satisfied-

  • The amount is invested by the assessee in the units, of Mutual Fund or Unit Trust of India, issued under the Equity Linked Savings Scheme;
  • Such amount is allowed as deduction under section 80CCB(1); and
  • The invested amount is returned to the assessee either on account of the repurchase of the units or on the termination of the plan.

TDS provisions covered under Section 194F states as under-

  • Any person responsible for paying any amount referred under section 80CCB(2) is liable to deduct TDS;
  • TDS is deductible @ 20%; and
  • It is deductible at the time of payment to the assessee.

Information source for information category 'Income on account of repurchase of units by MF/ UTI'

As per TDS provisions, the deductor (i.e., fund or trust) is liable to furnish all the details of TDS deducted via quarterly TDS statement/ return in Form 26Q. Furthermore, the deductor is also required to issue a TDS certificate to the deductee/ recipient on a quarterly basis in Form 16A.

Details so furnished by the deductor in Form 26Q will be taken up as the source of information for the said information category under 'Annual Information Statement'.

AIS processing of information category 'income on account of repurchase of units by MF/ UTI'

Information captured under the Annual Information Statement for the said information category will be processed as under-

  • Income will be taxable in the hands of the recipient; and
  • Such income will be reflected, in AIS, under the taxable category 'Income from other sources'.


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