Section 194LBC – Income in respect of Investment in Securitization Trust

Section 194LBC of the Income Tax Act, 1961 has been inserted with effect from 1^st June 2016.

Deductor: A person making payment to an investor in respect of an investment in a Securitization Trust shall be liable to deduct tax.

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 –

• 25% in case payee is an HUF or an Individual
• 30% in case of any other person
• Rates in force for Non-Residents

∼Authored by – CA Anushka Saraogi∼

Section 194LBA – Certain Income from units of Business Trust