Section 10(23D) → Section 12
Income of Mutual Funds
Quick Answer
Section 10(23D) of the Income Tax Act, 1961 (Income of Mutual Funds) corresponds to Section 12 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 10(23D)
Provision Summary
Exempts the income earned by a SEBI-registered Mutual Fund (the fund itself, not the investor).
Sec 12
Provision Summary
Retained. The pass-through status is maintained so that tax is only levied when income is distributed to the retail unit holder.
Key Changes & Highlights
- SEBI registration API integration is mandatory to claim this.
Related Sections
Frequently Asked Questions
What does Section 10(23D) of the Income Tax Act 1961 deal with?
Section 10(23D) (Income of Mutual Funds) Exempts the income earned by a SEBI-registered Mutual Fund (the fund itself, not the investor).
What is the new section number for Section 10(23D) under the Direct Tax Code 2025?
Section 10(23D) of the ITA 1961 maps to Section 12 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 10(23D) under the new tax code?
Section 10(23D) is marked as "Retained" with status "Active". Impact: Critical - The foundational exemption that makes the entire Mutual Fund industry viable.
What are the key changes to Section 10(23D) under DTC 2025?
SEBI registration API integration is mandatory to claim this.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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