Section 194LA: TDS on Payment of Compensation on Acquisition of Certain Immovable Property
Who needs to deduct TDS u/s 194LA?
Any person who pays a resident a sum (being consideration/ compensation or enhanced consideration/ compensation) on compulsory acquisition of any immovable property (other than agriculture land) is required to deduct tax at source.
What is the rate & time of tax deduction u/s 194LA?
The rate of tax u/s 194LA is 10%. The time of deduction is at the time of payment of the amount in cash, cheque, draft, or any other mode, whichever is earlier.
No requirement for TDS in the following cases :
- When does the amount (at once or in total for the whole financial year) not exceed? 250000.
- When any payment is made, u/s 96 of the Right to Fair Compensation and Transparency in Land, Acquisition, Rehabilitation and Resettlement Act, 2013.
Section 194LB: TDS on Income by way of Interest from Infrastructure Debt Fund
Who needs to deduct TDS u/s 194LB?
Any person who makes payment of interest [which is payable by an infrastructure debt fund, as per section 10(47)] to a non-resident (not a company/ foreign company) is required to deduct tax at source.
What is the rate & time of tax deduction u/s 194LB?
The rate of tax u/s 194LB is 5%. ( EC & SHEC also applicable) The time of deduction is at the time of payment of such sum.
Additional Charges
Surcharge and Health & Education Cess at 4% are to be added to the base rate of 5%, if applicable.
Section 194LBA: TDS on Certain Income from Units of a Business Trust
Who needs to deduct TDS u/s 194LBA?
Any person who makes payment of income [as per section 115UA], which is payable by a business trust to its unitholder, is required to deduct tax at source. Such unit holder can be a resident or non-resident (but not a company).
What is the rate & time of tax deduction u/s 194LBA?
The rate of tax u/s 194LBA is 10% (if the payee is resident) and 5% (if the payee is non-resident).
The time of deduction is earlier of, the credit of income to the account of the payee (receiver) or actual payment (in cash, cheque, draft, or another mode).
Exemptions
Sub-sections (1) and (2) do not apply to income referred to in sub-clause (b) of clause (23FC) of section 10 if the special purpose vehicle has not exercised the option under section 115BAA.
Section 194LBB: TDS on Income in Respect of Units of Investment Fund
Who needs to deduct TDS u/s 194LBB?
Any person who gives an income (as referred to u/s 115UB) to a unitholder in respect of units held in an investment trust has to deduct tax under this section.
What is the rate & time of tax deduction u/s 194LBB?
The rate of tax u/s 194LBB is 10% (if the payee is resident), and if the payee is a non-resident (not a company) or a foreign company, then tax will be as per the rates in force during FY.
The time of deduction is earlier of, the credit of income to the account of the payee (receiver) or actual payment (in cash, cheque, draft, or another mode).
Additional Charges
No surcharge or education cess is added to the above rates for residents. For non-residents, applicable surcharge and cess are added.
Section 194LBC: TDS on Income in Respect of Investment in Securitisation Trust
Who needs to deduct TDS u/s 194LBC?
Any person who gives income to an investor with respect to investment in a securitization trust is required to deduct tax under this section.
What is the rate & time of tax deduction u/s 194LBC?
The rate of tax u/s 194LBC is:
- 25% (if the payee is a resident Individual & HUF)
- 30% (if the payee is another person)
- At the rates in force [if the payee is a non-resident (not being a company) or foreign company].
The time of deduction is earlier of, the credit of income to the account of the payee (receiver) or actual payment (in cash, cheque, draft, or another mode).
Section 194LC: TDS on Income by way of Interest from Indian Company or Business trust
Who needs to deduct TDS u/s 194LC?
If an Indian company or a business trust pays income by way of interest to a non-resident ( other than company) or foreign company, it has to deduct TDS under this section.
Interest on which TDS is to be deducted
The interest must be in respect of money borrowed by the specified company or business trust from a source outside India by way of the issue of a rupee-denominated bond.
What is the rate & time of tax deduction u/s 194LC?
The rate of tax u/s 194LC is 5% (plus Health & Education Cess @ 4%). The time of deduction is earlier of, the credit of income to the account of the payee (receiver) or actual payment (in cash, cheque, draft, or another mode).
Section 194LD: TDS on Income by way of Interest on Certain Bonds and Government Securities
Who needs to deduct TDS u/s 194LD?
If any person makes a payment to an FII (Foreign Institutional Investor) or QFI (Qualified Foreign Investor) as income in the form of interest, tax must be deducted at the source.
Interest on which TDS is to be deducted
Interest must be in respect of investment made by the payee in a rupee-denominated bond of an Indian Company or a government security.
What is the rate & time of tax deduction u/s 194LD?
The rate of tax u/s 194LD is 5% (plus Health & Education Cess @ 4%). The time of deduction is earlier of, the credit of income to the account of the payee (receiver) or actual payment (in cash, cheque, draft, or another mode).
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