Section 194LBC of Income Tax Act

Section 194LBC

Under Section 194LBC of income tax act, 1961, any person responsible for making any payment to an investor, who is a resident; in respect of an investment in a securitization trust specified in clause (d) of the Explanation occurring after section 115TCA; at the time of credit of such income to the account of the payee; or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier; shall deduct income tax thereon, at the rate of;

  • 25%, in case the payee is an individual or HUF
  • 30%, in case of other than an individual or HUF

Section 194LBC of Income Tax Act

Section 194LBC

In case any income is payable to a non-resident investor (not being a company) or a foreign company; in respect of an investment in a securitization trust specified in clause (d) of the Explanation occurring after section 115TCA; the person liable for making the payment shall at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon, at the rates in force.

For the purposes of this section; ‘Investor’ shall have the meaning assigned to it in clause (a) of the explanation occurring after section 115TCA.

If any income as aforesaid is credited to any account, whether called suspense account or by any other name in the books of account of the person liable 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 194LBC of Income Tax Act

READ MORE Section 80EE of Income Tax Act, 1961

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