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