Under Section 194LBB of Income Tax Act, 1961; where any income, other than that proportion of income which is of the same nature as income referred to in clause (23FBB) of section 10; is payable to a unit holder in respect of units of an investment fund specified in clause (a) of the Explanation 1 to section 115UB; the person liable for making such payment, at the time of credit of such income to the account of payee; or at the time of payment thereof in cash or by cheque or draft or by any other mode; whichever is earlier, shall deduct income-tax thereon at the rate of.
Section 194LBB of Income Tax Act
10% in case the payee is a resident
Rates in force, in case the payee is a non-resident (not being a company) or a foreign company
In case the PAN is not furnished, 20% or rate applicable, whichever is higher is applicable.
In case of a non-resident payee (not being a company) or a foreign company, no deduction is to be made in respect of any income that is not chargeable to tax under the provisions of the act.
For the purposes of this section; ‘Unit’ shall have the meaning assigned to it in clause (c) of the Explanation 1 to section 115UB.
If any income as aforesaid is credited to any account, whether called ‘suspense account’ or by any other name, in the books of accounts of the person responsible to pay such income, such crediting shall be deemed to be the credit of such income to the account of the payee, and the provisions of this section shall apply accordingly.Section 194LBB of Income Tax Act