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TDS from Income from Units of Business Trust – Section 194LBA

This section is inserted by Finance Act 2014 and is applicable from 1st Oct, 2014.

Tax is to be deductible if a business trust distributes any income referred to in section 115UA being of the nature referred to in section 10(23FC) to its unit holder.

Time of deduction – Tax is deductible at the time of credit of such payment to the account of the payee or at the time of payment in cash or by cheque/dd or any other mode whichever is earlier.

Rate of TDS – If the recipient is resident in India – 10%
If the recipient is a non – resident or a foreign company – 5%
If the recipient doesn’t have PAN or doesn’t furnish PAN to deductor – 20%

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