Section 196B - TDS on income from units to Offshore fund - Income Tax - Ready Reckoner - Income Tax

Section 196B : TDS on Long Term Capital Gains (LTCG) from units purchased in foreign currency referred in s ection 115AB Applicability and Rate of TDS Where the total income of an assessee, being an overseas financial organisation (hereinafter referred to as Offshore Fund) includes- ( a ) income received in respect of units purchased in foreign currency; or ( b ) income by way of long-term capital gains arising from the transfer of units purchased in foreign currency, Rate of TDS From 23rd July 2024 [ substituted vide Finance (No. 2) Act, 2024 ] (a) 10% in respect of income from units referred to in section 115AB(1)(i); (b) 10% in respect of long-term capital gains arising from transfer of units referred to in section 115AB, which takes place before the 23rd day of July, 2024; (c) 12.5% in respect of long-term capital gains arising from transfer of units referred to in section 115AB, which takes place on or after the 23rd day of July, 2024. Upto 22th July 2024 - the person responsible for making the payment shall deduct income tax thereon @ 10%. the person responsible for making the payment shall deduct income tax thereon @ 10% + surcharge as applicable. Time of deduction - Income tax shall be deducted either at the time of actual payment of such income or at the time of its credit to the account of the payee, whichever is earlier. Note: Income on units referred to in section 115AB is exempt under section 10(35) and hence, no TDS. No TDS shall be deducted on Long Term Capital Gains exempt under section 10(38) .