Withholding on business trust distributions requires tax deduction, lower rate for nonresident unit holders and higher rate for residents.

Section 194LBA requires the person responsible for payment of distributed income of a business trust (as referred to in section 115UA and clause (23FC) of section 10) to deduct tax at the time of credit or payment. The provision prescribes differential withholding by residency, applying a lower deduction for nonresident unit holders (excluding companies) and a higher deduction for resident unit holders, and takes effect from 1 October 2014.

---

---

---