In the last part of our TDS series, we will discuss in detail Section 194 L series which majorly focus upon those type of income occurrence of which is not very frequent (or rather we’d say pretty uncommon).
But nonetheless, having a brief idea about all these sections is required. So let’s start our last leg of the TDS series by having a brief overview of all the sections we will touch upon. These Sections include TDS on-
Any person who pays to 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 such sum.
No requirement of TDS in the following cases :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.
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, 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).
Any person who gives an income (as referred 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 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).
Any person who gives income to an investor with respect to investment in 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:
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).
If an Indian company or a business trust pays income by way of interest to non-resident (not being a company) or foreign company, has to deduct TDS under this section.
Interest on which TDS is to be deductedThe Interest must be in respect of money borrowed by the specified company or business trust from a source outside India by the way of issue of 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).
If any person pays to FII (Foreign Institutional Investor) or QFB (Qualified Foreign Investor) income by way of interest has to deduct tax at source.
Interest on which TDS is to be deductedInterest must be in respect of investment made by the payee in a rupee-denominated bond of 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).
Ans: Yes Section 194LA come into force for deducting tax on compensation on acquisition of certain immovable property (other than agriculture land).
Ans: Compulsory acquisition is the power of government to acquire the land from its owner without the willing consent of owner in order to benefit the society.
Ans: Section 195 is the sec of TDS deducted on the non resident.There are various rate for TDS under section 195 these are covered under 10% to 30% bracket.
Ans: TDS is not deducted on the GST component of invoice. TDS is deducted on the amount excluding the GST.
Ans: TDS rate for payment to non resident is under section 195.There are various rate for TDS under section 195 these are covered under 10% to 30% bracket.
Ans: TDS on the professional fees is covered under section 194J.If professional fees in exceeds rupees 30000 then TDS is deducted @10%.
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