TDS on Payments to Contractors or Professionals by Certain Individuals or HUFs Introduction As per section 194M, individuals and HUFs who are not liable to deduct tax under Sections 194C, 194H, or 194J must deduct TDS at 2% on payments to contractors, commission agents, brokers, or professionals if the total amount exceeds Rs. 50 lakh in a financial year. Key… Read More »

TDS on Interest Paid on Foreign Borrowings Introduction As per section 194LC, Indian companies and business trusts must deduct TDS on interest paid to non-residents or foreign companies for specified foreign borrowings, including long-term infrastructure bonds and rupee-denominated bonds. Key Provisions Deductor:Any Indian company or business trust making interest payments in respect of foreign borrowings. Deductee:Non-residents… Read More »

TDS on Income from Investment in Securitization Trust Introduction TDS must be deducted under section 194LBC on income paid to investors in a Securitization Trust, regardless of their residential status. Key Provisions Deductor:Any person making payments related to investments in a Securitization Trust. Deductee:All investors (both residents and non-residents). Rate of TDS: o For Residents: 10% o… Read More »

TDS on Income Distributed by Investment Funds Introduction Investment funds must deduct TDS under section 194LBB on income (other than business profits) distributed to unit holders, regardless of their residential status. Key Provisions Deductor:The Investment Fund making the distribution. Deductee:All unit holders (both residents and non-residents). Rate of TDS: o For Residents: 10% on distributed income. o… Read More »

TDS on Income Distributed by Business Trusts Introduction As per section 194LBA, business trusts, such as Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InVITs), must deduct TDS on specified income distributed to unit holders, regardless of their residential status. Key Provisions Deductor:The business trust making distributions. Deductee:All unit holders (both residents and non-residents). Income… Read More »

TDS on Interest from Infrastructure Debt Fund Introduction TDS must be deducted under section 194LB at 5% (plus surcharge and cess) on interest payments made by Infrastructure Debt Funds (IDFs) to non-residents, including foreign companies. Key Provisions Deductor:The Infrastructure Debt Fund is making interest payments. Deductee:TDS applies only if the recipient is a non-resident or a foreign… Read More »

TDS on Compulsory Acquisition of Immovable Property Introduction TDS must be deducted under section 194LA at 10% on compensation or enhanced compensation paid to a resident for the compulsory acquisition of immovable property (other than agricultural land). Key Provisions Deductor:Any person making compensation payments for compulsory acquisition. Deductee:Only applicable if the recipient is a resident; for non-residents,… Read More »