Business Trust income distributions to non-resident unit holders require withholding based on whether the distributed income is interest or dividend.

Tax deduction at source applies to qualifying distributed income of a Business Trust payable to a non-resident unit holder other than a company, or to a foreign company. The Business Trust must deduct tax at the earlier of credit or payment. Interest income covered by the relevant Schedule V category attracts deduction at 5%, while dividend income attracts deduction at 10%. No monetary threshold applies, so every qualifying distribution is subject to withholding, subject to the separately specified exception for non-deduction.

---

---

---