Section 115AD of the 1961 Act → Section 210 of the 2025 Act
Tax on specified funds and FIIs.
Quick answer
Section 115AD of the Income-tax Act, 1961 corresponds to Section 210 of the Income-tax Act, 2025. Relationship: Revised. Correspondence verified against both Acts.
How it works
A specified fund (and a foreign institutional investor) pays tax on Indian income at special rates rather than normal rates.
Example
A specified fund earns Indian dividends: taxed at 10%.
What you need to do
Fund: apply the section 210 rates to its Indian income. Investor in a specified fund: no action on this provision.
What changed?
- Read the complete new provision, including its conditions, exceptions and related provisions, when applying it.
The two texts, side by side
1961 · Section 115AD115AD. (1) Where the total income of a specified fund or Foreign Institutional Investor includes— (a) income received in respect of securities (other than units referred to in section 115AB); or (b) income by way of short-term or long-term capital gains arising from the transfer of such securities, the income-tax payable shall be the aggregate of— (i) the amount of income-tax calculated on the income in respect of securities referred to in clause (a), if any, included in the total income,— (A) at the rate of twenty per cent in case of Foreign Institutional Investor; (B) at the rate of ten per cent in case of specified fund: Provided that …
2025 · Section 210210. (1) The income-tax payable on the total income of an assessee, being a specified fund or Foreign Institutional Investor, which includes income referred to in column B of the Table below, shall be the aggregate of income-tax computed at the rate specified in the column C applied on the corresponding income specified in column B. TABLE …
Excerpts end with … where the provision continues. Last reviewed 24 October 2026.
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CS Prashant Kumar
Company Secretary & Compliance Officer
Global Horizons Capital Advisors (IFSC) Private Limited — an IFSCA-licensed investment banker
Published in The Chartered Accountant (Jun 2025, Jan 2025, Mar 2024) and Chartered Secretary (Aug 2023)
Prashant Kumar is a seasoned Company Secretary and corporate governance strategist with more than 13 years of experience advising large corporates, promoter-led groups and global businesses on compliance, regulatory risk and board governance. In GIFT IFSC, the IFSCA regime is his day job rather than a research topic.