Section 194LBB of Income Tax Act "Income in respect of units of investment fund"
194LBB. 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, 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.
194LC. (1) Where any income by way of interest referred
to in sub-section (2) is payable to a non-resident, not
being a company or to a foreign company by a specified
company or a business trust, 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 the income-tax
thereon at the rate of five per cent:
60[Provided that in case of income by way of interest
referred to clause (ib) of sub-section (2), the income-tax
shall be deducted at the rate of four per cent;]
(2) The interest referred to in sub-section (1) shall be the
income by way of interest payable by the specified company
or the business trust,-
(i) in respect of monies borrowed by it in foreign currency
from a source outside India,-
(a) under a loan agreement at any time on or after the 1st
day of July, 2012 but before the 1st day of July, 61[2023];
or
(b) by way of issue of long-term infrastructure bonds at any
time on or after the 1st day of July, 2012 but before the
1st day of October, 2014; or
(c) by way of issue of any long-term bond including
long-term infrastructure bond at any time on or after the
1st day of October, 2014 but before the 1st day of July,
62[2023],
as approved by the Central Government in this behalf; or
(ia) in respect of monies borrowed by it from a source
outside India by way of issue of rupee denominated bond
before the 1st day of July, 63[2023, or]
64[(ib) in respect of monies borrowed by it from a source
outside India by way of issue of any long-term bond or rupee
denominated bond on or after the 1st day of April, 2020 but
before the 1st day of July, 2023, which is listed only on a
recognised stock exchange located in any International
Financial Services Centre, and]
(ii) to the extent to which such interest does not exceed
the amount of interest calculated at the rate approved by
the Central Government in this behalf, having regard to the
terms of the loan or the bond and its repayment.
Explanation.-For the purpose of this section-
(a) "foreign currency" shall have the meaning assigned to it
in clause (m) of section 2 of the Foreign Exchange
Management Act, 1999 (42 of 1999);
(b) "specified company" means an Indian company;
64[(c) "International Financial Services Centre" shall have
the meaning assigned to it in clause (q) of section 2 of the
Special Economic Zones Act, 2005 (28 of 2005);
(d) "recognised stock exchange" shall have the meaning
assigned to it in clause (ii) of Explanation 1 to clause (5)
of section 43.]