Section 194LB – Income by way of interest from Infrastructure Debt Fund

TDS shall be deducted under Sec 194LB for Interest from Infrastructure Funds if the following conditions apply-

  1. The interest income is paid by an infrastructure debt fund referred to in section 10 (47).
  2. Interest income is paid to a non-resident or to a foreign company.

Time of Deduction: Deduction shall be made by payer, earlier of-

  • At the time of credit of income to the account of the recipient or
  • At the time of payment in cash or draft or cheque or any other mode

Rate of Deduction: TDS to be deducted at the rate of 5%.

∼Authored by – CA Anushka Saraogi

TDS Returns Software for FY: 2022-23 Released


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