Section 194LBA in Income Tax Act 2025: New Sections

As enacted

s.393(1) [Table: Sl. No. 4(ii)]Act page 470

Distributed income of a business trust payable to a resident unitholder

Rate: 10%
Threshold: Nil
Who deducts: Any Business Trust
1961 Act: Section 194LBA(1)

s.393(2) [Table: Sl. No. 6]Act page 477

Distributed income of a business trust of the nature in Schedule V Sl.3, to a non-resident unitholder

Rate: 5% or 10% according to the nature of the income
Who deducts: Any business trust
1961 Act: Section 194LBA(2)

s.393(2) [Table: Sl. No. 7]Act page 478

Distributed income of a business trust of the nature in Schedule V Sl.4, to a non-resident unitholder

Rate: Rates in force
Who deducts: Any business trust
1961 Act: Section 194LBA(3)

Source: the enacted text of the Income-tax Act, 2025 [30 of 2025], as amended by the Finance Act, 2026, pages 470, 477, 478. This page sets out the Table entry as read from the Act; read the section and the Notes to its Table before relying on it for a return or an opinion.

Questions this answers

What is section 194LBA called in the Income-tax Act, 2025?

In the Income-tax Act, 2025, 194LBA(1) is s.393(1) [Table: Sl. No. 4(ii)], 194LBA(2) is s.393(2) [Table: Sl. No. 6] and 194LBA(3) is s.393(2) [Table: Sl. No. 7]. The Income-tax Act, 2025 is in force from 1 April 2026 and applies from FY 2026-27.

What is the TDS rate and threshold under s.393(1) [Table: Sl. No. 4(ii)]?

Rate: 10%. Threshold: Nil. It covers: Distributed income of a business trust payable to a resident unitholder.

What is the TDS rate and threshold under s.393(2) [Table: Sl. No. 6]?

Rate: 5% or 10% according to the nature of the income. It covers: Distributed income of a business trust of the nature in Schedule V Sl.3, to a non-resident unitholder.

What is the TDS rate and threshold under s.393(2) [Table: Sl. No. 7]?

Rate: Rates in force. It covers: Distributed income of a business trust of the nature in Schedule V Sl.4, to a non-resident unitholder.

Section 194LBA in the Income-tax Act, 2025