What is Income by way of interest from infrastructure debt fund? What is the treatment of Certain income from units of a business trust? Section 194LB and 194 LBA of Income Tax Act 1961

Income by way of interest from infrastructure debt fund and Certain income from units of a business trust are defined under section 194 LB and 194LBA of Income Tax Act 1961. Provisions under these Sections are :

Section 194LB of Income Tax Act "Income by way of interest from infrastructure debt fund"

Section 194LB. Where any income by way of interest is payable to a non-resident, not being a company, or to a foreign company, by an infrastructure debt fund referred to in clause (47) of section 10, the person responsible for making the payment shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of five per cent.

 

Section 194LBA of Income Tax Act "Certain income from units of a business trust"

Section 194LBA. (1) Where any distributed income referred to in section 115UA, being of the nature referred to in clause (23FC) 81[or clause 23FCA] of section 10, is payable by a business trust to its unit holder being a resident, the person responsible for making the payment shall at the time of credit of such payment to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of ten per cent.

 

Section 194LA of Income Tax Act "Payment of compensation on acquisition of certain immovable property"

Section (2) Where any distributed income referred to in section 115UA, being of the nature referred to in clause (23FC) of section 10, is payable by a business trust to its unit holder, 82[being a non-resident (not being a company)] or a foreign company, the person responsible for making the payment shall at the time of credit of such payment to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of five per cent.]

(3) Where any distributed income referred to in section 115UA, being of the nature referred to in clause (23FCA) of section 10, is payable by a business trust to its unit holder, being a non-resident (not being a company), or a foreign company, the person responsible for making the payment shall at the time of credit of such payment to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force.

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