Income Tax Act, 2025
Section 6: Ins. by Act 20 of 2015, s. 46 (w.e.f. 12015).
6. Ins. by Act 20 of 2015, s. 46 (w.e.f. 12015).
7. Subs. by s. 46, ibid., for “being a non-resident, not being a company” (w.e.f. 12015).
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1[194LBB. Income in respect of units of investment fund.—Where any income, other than that
proportion of income which is of the same nature as income referred to in clause (23FBB) of section 10,
is payable to a unit holder in respect of units of an investment fund specified in clause (a) of
the Explanation 1 to section 115UB, the person responsible for making the payment shall, at the time of
credit of such income to the account of 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,2[deduct income-tax thereon,—
(i) at the rate of ten per cent, where the payee is a resident;
(ii) at the rates in force, where the payee is a non-resident (not being a company) or a foreign
company:
Provided that where the payee is a non-resident (not being a company) or a foreign company, no
deduction shall be made in respect of any income that is not chargeable to tax under the provisions of the
Act.]
Explanation.—For the purposes of this section,—
(a) “unit” shall have the meaning assigned to it in clause (c) of the Explanation 1 to
section 115UB;
(b) where any income as aforesaid is credited to any account, whether called “suspense account”
or by any other name, in the books of account of the person liable to pay such income, such crediting
shall be deemed to be the credit of such income to the account of the payee, and the provisions of this
section shall apply accordingly.]
3[194LBC.Income in respect of investment in securitization trust.—(1) Where any income is
payable to an investor, being a resident, in respect of an investment in a securitisation trust specified in
clause (d) of the Explanation occurring after section 115TCA, 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—
(i) twenty-five per cent., if the payee is an individual or a Hindu undivided family;
(ii) thirty per cent., if the payee is any other person.
(2) Where any income is payable to an investor, being a non-resident (not being a company) or a
foreign company, in respect of an investment in a securitisation trust specified in clause (d) of
the Explanation occurring after section 115TCA, 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
rates in force.
Explanation.—For the purposes of this section,—
(a) “investor” shall have the meaning assigned to it in clause (a) of the Explanation occurring
after section 115TCA;
of section 10,
is payable to a unit holder in respect of units of an investment fund specified in clause
of
the Explanation 1 to section 115UB, the person responsible for making the payment shall, at the time of
credit of such income to the account of 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,2[deduct income-tax thereon,—
at the rate of ten per cent, where the payee is a resident;
at the rates in force, where the payee is a non-resident (not being a company) or a foreign
company:
Provided that where the payee is a non-resident (not being a company) or a foreign company, no
deduction shall be made in respect of any income that is not chargeable to tax under the provisions of the
Act.]
Explanation.—For the purposes of this section,—
“unit” shall have the meaning assigned to it in clause
of the Explanation 1 to
section 115UB;
where any income as aforesaid is credited to any account, whether called “suspense account”
or by any other name, in the books of account of the person liable to pay such income, such crediting
shall be deemed to be the credit of such income to the account of the payee, and the provisions of this
section shall apply accordingly.]
3[194LBC.Income in respect of investment in securitization trust.—
Where any income is
payable to an investor, being a resident, in respect of an investment in a securitisation trust specified in
clause
of the Explanation occurring after section 115TCA, 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—
twenty-five per cent., if the payee is an individual or a Hindu undivided family;
thirty per cent., if the payee is any other person.
Where any income is payable to an investor, being a non-resident (not being a company) or a
foreign company, in respect of an investment in a securitisation trust specified in clause
of
the Explanation occurring after section 115TCA, 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
rates in force.
Explanation.—For the purposes of this section,—
“investor” shall have the meaning assigned to it in clause
of the Explanation occurring
after section 115TCA;