Income from AIF Mutual Fund-Under Section-115UA & 115UB.

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This discussion clarifies how to handle income received from Alternative Investment Funds (AIFs) under Sections 115UA and 115UB of the Income Tax Act. It covers various income types like dividends, capital gains, and interest, and addresses whether this income needs to be recorded in company accounts or solely reported in Schedule PTI of the Income Tax Return. The advice suggests that if income isn't distributed in cash, it should be declared in the Balance Sheet.

NK1976

NK1976 (Querist)
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01 August 2023 Dear Sir,

We have received the statement of Share of Income from AIF Mutual Fund for FY 2022-23.
The Share of income received from Business Trust & Investment fund. The Nature of Income is :
1)Share in dividend income
2) Short-term capital gains / (loss)-STT Paid
3)Long-term capital gains / (loss)-STT Paid.
4)Gains arising from buyback of shares exempt u/s 10(34A)
5)Interest Income.
One of AIF Mutual Fund has also deducted TDS on share of income, in the rest there is no TDS.

My question is whether that part of share of income which is reported from AIF Mutual Fund should be shown in the books of accounts of the company or not, or only reporting in Schedule PTI in ITR in Income Tax Return. Schedule PTI : Pass Through Income details from business trust or investment fund as per section 115UA, 115UB.

Kindly give your valuable advice on the above subject.

Thanks & Regards
N Kadam

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 August 2023 Yes, it will be added to the share's investment, in case not paid in cash.

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NK1976

NK1976 (Querist)
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01 August 2023 The share of income which is reported from AIF Mutual Fund should be shown in the books of accounts of the company or not, or only reporting in Schedule PTI in ITR in Income Tax Return.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 August 2023 It seems the income is not distributed in cash, means it is capitalized. Hence it should be declared in BS.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 September 2024 Good Luck.

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