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<h1>Business trust must deduct TDS from distributed income: 10% for resident holders; 5%/10% or in-force rates for non-residents</h1> Where a business trust pays distributed income under the specified provision, the payer must deduct tax at source: 10% when the unit holder is a resident; for non-resident unit holders or foreign companies certain categories attract 5% or 10% withholding depending on the nature of income; an exemption from these deductions applies for one category of income if the special purpose vehicle has not opted for the specified tax regime; for another category of distributed income payable to non-residents or foreign companies tax is to be deducted at the rates in force.