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,—

1. (i) at the rate of ten per cent, where the payee is a resident;
2. (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,—

1. (a) “unit” shall have the meaning assigned to it in clause (c) of the Explanation 1 to section 115UB;
2. (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.

1. (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;
   • (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.]

¹ Ins. by Act 20 of 2015, s. 47 (w.e.f. 1-6-2015).

² Subs. by Act 28 of 2016, s. 83, for “deduct income-tax thereon at the rate of ten per cent.” (w.e.f. 1-6-2016).

³ Ins. by s. 84, ibid (w.e.f. 1-6-2016).