Withholding on interest from infrastructure debt funds requires tax deduction by payer when payable to non-residents. Section 194LB requires payors who are infrastructure debt funds to deduct income-tax at source when paying or crediting interest to non-residents (including foreign companies). The duty to deduct arises at the earlier of credit to the payee's account or actual payment and the provision prescribes deduction at the rate of five per cent, effective from 1 June 2011.