FME Regulatory Intelligence, Learning & Practice · IFSCA (Fund Management) Regulations, 2025

Section 10(23FBB) of the 1961 Act → Schedule V, Sl. 2 of the 2025 Act

Exemption for unit holders on business income already taxed.

Quick answer

Section 10(23FBB) of the Income-tax Act, 1961 corresponds to Schedule V, Sl. 2 of the Income-tax Act, 2025. Relationship: Revised. Correspondence verified against both Acts.

How it works

Business income already taxed at the fund is not taxed again in the investor’s hands.

Example

If the fund paid tax on its business income, your share of that income is not added to your income.

What you need to do

Investor: leave that share out of income when the fund’s statement shows it as taxed at fund level.

What changed?

  • The rule has moved out of a clause of section 10 into a schedule table that sets out the income, the eligible persons and the conditions.
  • Read the complete new provision, including its conditions, exceptions and related provisions, when applying it.

The two texts, side by side

1961 · Section 10(23FBB)(23FBB) any income referred to in section 115UB, accruing or arising to, or received by, a unit holder of an investment fund, being that proportion of income which is of the same nature as income chargeable under the head "Profits and gains of business or profession". Explanation.—For the purposes of clauses …
2025 · Schedule V, Sl. 22. Any income referred to in section 224, accruing or arising to, or received being that proportion of income which is of the same nature as income chargeable under the head “Profits and gains of business or profession”. A unit holder of an investment fund. Nil.

Excerpts end with … where the provision continues. Last reviewed 24 October 2026.

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