Section 32(2) in The Unit Trust Of India Act, 1963

Central Government Act

(2) Notwithstanding anything contained in section 193 or section 194 of the Income- tax Act, 1961 (43 of 1961 ),--

(a) no deduction of income- tax or super- tax shall be made on any interest or dividend payable to the Trust in

1. Ins. by Act 17 of 1966, s. 10 (w. e. f. 1- 4- 1964, vide Act 20 of 1967, s. 45). 2. Ins. by Act 3 of 1976, s. 2 (w. e. f. 24. 1. 1976 ). 3. Subs. by Act 21 of 1984, s. 54 (w. e. f. 1- 4- 1985 ).

respect of any securities or shares owned by it or in which it has full beneficial interest 1[

(b) no deduction of income- tax shall be made by the Trust from the income distributed by it to a unit holder being an individual 2[ who is resident; and]

(c) 3[ where in the case of a unit holder, being an individual who is not resident in India, the income in respect of units receivable by him from the Trust during the financial year-

(i) does not exceed 4[ 5[ seven thousand rupees] deduction of income- tax shall be made by the Trust from the income distributed to him;

(ii) exceeds 4[ seven thousand rupees] 5[ income- tax shall be made by the Trust from the whole of the income distributed to him at the rate of fifteen per cent. of such income:] 6[ Provided that no deduction of income- tax shall be made by the Trust, where the units in respect of which income is distributed to-

(i) an individual who is an Indian or a person of Indian origin, or

(ii) a Hindu undivided family, not resident in India, have been acquired from the Trust, out of funds in a Non- resident (External) Account maintained with any bank in India or by the remittance of funds in foreign exchange, in accordance, in either case, with the provisions of the Foreign Exchange Regulation Act, 1973 (46 of 1973 ), or any rules or orders made thereunder.]