TDS shall be deducted under Sec 194LB for Interest from Infrastructure Funds if the following conditions apply-
- The interest income is paid by an infrastructure debt fund referred to in section 10 (47).
- 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∼