Section 194LBA of the Income Tax Act, 1961 has been inserted with effect from 1st October, 2014. The provisions of the same are explained hereunder –
| The Income covered under Section 194LBA | Time of Deduction | Rate of Deduction |
| Nature of Income: Income distributed by Business Trusts referred to in Sec 115UA, being of a nature referred to in Section 10 (23FC) or section 10 (23FCA).
Income payable to: Business Trust pays to its unit holders being a resident.
Deductor: Business Trust is liable to deduct TDS. |
Earlier of the following – · Time of credit of payment to the account of the payee; or · Time of payment in cash or draft or cheque or any other mode. |
10% |
| Nature of Income: Income distributed by Business Trusts referred to in Sec 115UA, being of a nature referred to in Section 10 (23FC).
Income payable to: Business Trust pays to its unit holders being a non-resident or to a foreign co.
Deductor: Business Trust is liable to deduct TDS |
Earlier of the following – · Time of credit of payment to the account of the payee; or · Time of payment in cash or draft or cheque or any other mode. |
Sec 10(23FC)(a)-5%
Sec 10(23FC)(b)-10% |
| Nature of Income: Income distributed by Business Trusts referred to in Sec 115UA, being of a nature referred to in section 10 (23FCA).
Income payable to: Business Trust pays to its unit holders being a non-resident or to a foreign co.
Deductor: Business Trust is liable to deduct TDS |
Earlier of the following – · Time of credit of payment to the account of the payee; or · Time of payment in cash or draft or cheque or any other mode. |
Rates in Force (i.e. 30%) |
Section 10(23FC)
Any income of a business trust by way of—
(a) Interest received or receivable from a special purpose vehicle; or
(b) Dividend [referred to in sub-section (7) of section 115-O].
Section 10(23FCA)
Any income of a business trust, being a real estate investment trust, by way of renting or leasing or letting out any real estate asset owned directly by such business trust.