Section 194LBA - Tax deduction from income from units of business trust - Income Tax - Ready Reckoner - Income Tax

Section 194LBA : Tax Deducted from Income from units of Business Trust This section has been inserted with effect from 01.10.2014. 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) or section 10(23FCA) to its unit holder. Time of deduction At the time of credit or payment, whichever is earlier . Rate of TDS : (i) If the recipient is resident in India 10% in case of interest or dividend received or receivable from SPV. (ii) If the recipient is a non-resident or a foreign company 5% in case of interest and 10% in case of dividend received or receivable from SPV. If, however, rental income (received by a real estate investment trust) is distributed to unitholders, tax shall be deducted at rate in force as applicable for deduction of tax on payment to the non-resident of any sum chargeable to tax [i.e. 40% (+SC+EC+SHEC) if recipient is a foreign company and 30% (+SC+EC+SHEC) if recipient is a non-resident] (iii) If the recipient doesn t have PAN or doesn t furnish PAN to deductor 20%