How to Fill Pass Through Income (PTI)

Income Tax || How to Fill Pass Through Income (PTI)

What is Pass Through Income (SECTION 115UA & 115UB):
Pass Through Income under Sections 115UA and 115UB of the Indian Income Tax Act pertains to the taxation of income earned through certain investment vehicles, such as Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), and Alternative Investment Funds (AIFs).
Section 115UA
Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs):
  • These trusts are designed to attract investment into the real estate and infrastructure sectors.
  • Under Section 115UA, the income generated by REITs and InvITs, which is distributed to their investors, is subject to a "pass-through" status. This means the income is taxed at the level of the investor rather than the trust itself.
  • The income can be in the form of dividends, interest, or rental income, and the taxation depends on the nature of the income.
Section 115UB
Alternative Investment Funds (AIFs):
  • This section pertains to Category I and Category II AIFs.
  • Similar to REITs and InvITs, the income generated by these funds and distributed to their investors is treated as "pass-through" income.
  • This means the income is taxed directly in the hands of the investors, according to their individual tax rates, rather than at the level of the AIF.
Key Points:
  • Taxation at Investor Level: Investors are taxed on the income they receive from these vehicles, avoiding double taxation (once at the entity level and again at the investor level).
  • Nature of Income Matters: The type of income (dividends, interest, capital gains) determines the tax rate applicable to the investors.
  • Transparency: These provisions ensure transparency and encourage investment by providing clarity on the tax implications.
How to Fill Pass Through Income (PTI) in Software:
Step 1:
Go to Transaction >> General Information/ BS/ P&L >> Click on PTI:


Step 2:
1. Click on Pass Through Income (PTI) to enter the quarter-wise amount in the related head of income.
2. Click on the related head of income, then press the F4 key on your keyboard. This will make the option visible to enter the input on a quarter-wise basis.




Step 3:
Now, click on Schedule PTI to enter the summary of Section 115UA/115UB:


Step 4:
1. Select the Section >> 115UA and 115UB
2. Enter the Name Of Business Trust/Investment Fund.
3. Enter the PAN of Entity 
4. Go to Applicable Head of Income>> Press F4 on "Current Year Income" Option (If Applicable):


Step 5:
Enter the amount of income and TDS amount in the applicable section:
1. Select the Applicable section Which is Income Relatable 
2. Enter the Current Year Income
3. Enter the Share of Current Year Loss Distributed By Investment Fund
4. Enter the TDS amount (if Applicable).


Step 6:
Go to Forms >> Computation:
1. Total Tax Amount Of PTI Income.
2. Here is Your PTI Income Available which is entered in Schedule PTI.


Hope this Helps.