Section 194LBA of Indian Income Tax Act

section 194LBA

Under section 194LBA of the income tax act, where any distributed income referred to in section 115UA; being of the nature referred as in clause (23FC) of section 10, is payable by a business trust to its unit holder being a resident; the person liable for making payment, shall deduct income tax at 10%; at the time of credit of such payment to the account of the payee; or at the time of payment thereof in cash or by cheque or draft or by any other mode; whichever is earlier.

Section 194LBA of Income Tax Act

Whether any distributed income referred to in section 115UA; being of the nature referred as in clause (23FCA) of section 10; is payable by a business trust to its unit holder; being a non-resident, non being a company or a foreign company; the person liable for making the payment shall; at the time of credit of such payment to the account of the payee; or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier; deduct income tax at the rate of 5%.

Section 194LBA (1)

Under this section, business trust shall deduct tax while distributing, any interest receivable or received by it from an SPV; or any income earned from renting or leasing or letting out any real estate asset owned directly by it, to its unitholders, being a resident. The TDS is to be deducted at the time of credit of such payment to the payee’s account; or at the time of payment thereof in cash or by the issue of a cheque or draft; or by any other mode; whichever is earlier, at the rate of 10%.

Section 194LBA (2)

Under this section, business trust shall deduct tax while distributing any interest income received or receivable by it from an APV; to its unitholders (not being a resident and not being a company) or foreign company. The TDS is to be deducted at the time of credit of such payment to the account of the payee; or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode; whichever is earlier, at the rate of 5%.

Section 194LBA (3)

Under this section, business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset; owned directly by it to its unitholders (not being a resident and not being a company) or foreign company. The TDS is to be deducted at the time of credit of such payment to the account of the payee; or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode; whichever is earlier, at the rate in force.

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