Withholding on mutual fund unit income applies to non-resident recipients, with lower treaty rates available on certification.

Section 393(2), Table Sl. No. 10, requires tax deduction at source on income from specified Mutual Fund units or units of a specified company payable to a non-resident other than a company or a foreign company. Any person making the payment must deduct tax at 20%. A lower rate under an agreement referred to in section 159 may apply where the recipient is entitled to that benefit and furnishes the prescribed certificate. No monetary threshold applies, and deduction is required at the earlier of credit or payment.

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