Non-resident UTI unit income: prescribed NRE Account and FEMA conditions permit TDS non-deduction for eligible recipients.

Income payable in respect of units of the Unit Trust of India to a Non-Resident Indian or a non-resident Hindu Undivided Family is ordinarily subject to tax deduction at source. No deduction is required where the payment concerns such units, the recipient has the specified non-resident status, and the prescribed NRE Account and FEMA conditions under rule 210 are fulfilled. The exemption operates as an exception to the ordinary withholding requirement for qualifying payments.

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