Business Trust income distributions to non-resident unit holders require category-based withholding at credit or payment, without any threshold.

Tax deduction at source applies where a Business Trust distributes qualifying income under section 223 to a non-resident unit holder, other than a company, or a foreign company. The Business Trust must deduct tax at the earlier of credit or payment. Interest income in the relevant Schedule V category attracts deduction at 5%, and qualifying dividend income attracts deduction at 10%. No monetary threshold applies, so every qualifying distribution is subject to withholding.

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