115UB. Tax on income of investment fund and its unit holders.
(1)Notwithstanding anything
contained in any other provisions of this Act and subject to the provisions of this Chapter, any income
accruing or arising to, or received by, a person, being a unit holder of an investment fund, out of
investments made in the investment fund, shall be chargeable to income -tax in the same manner as if it
were the income accruing or arising to, or received by, such person had the investments made by the
investment fund been made directly by him. (2)Where in any previous year, the net result of computation of total income of the investment fund
[without giving effect to the provisions of clause ( 23FBA ) of section 10] is a loss under any head of
income and such loss cannot be or is not wholly set -off against income under any other head of income of
the said previous year, then, - (i)such lo ss shall be allowed to be carried forward and it shall be set -off by the investment fund
in accordance with the provisions of Chapter VI; and (ii)such loss shall be ignored for the purposes of sub -section ( 1). (3)The income paid or credited by the inves tment fund shall be deemed to be of the same nature and
in the same proportion in the hands of the person referred to in sub -section ( 1), as if it had been received
by, or had accrued or arisen to, the investment fund during the previous year subject to th e provisions of
sub-section ( 2).