Additional income tax scope on distributed income under 115R

Scope of distributed income under section 115R excludes redemption of units or repurchase of units would not attract levy of tax under sub-section (2) to section 115R as nature of income is not classifed as “Distributed income”. Similarly, Bonus issue is not of similar nature to distribution of income by way of dividend. Hence, Bonus issue is also not subjected to additional income tax.

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