Capital-market income withholding requires deduction on specified unit, trust and fund payments, with exemption limited to eligible investment-fund income.

Tax deduction at source applies at 10% to resident income from mutual fund and specified units, business-trust distributions, taxable investment-fund income, and securitisation-trust investments. Mutual fund and specified-unit income attracts deduction only where it exceeds Rs. 10,000. Business-trust distributions and securitisation-trust income carry no threshold. For investment-fund income, deduction applies only to the taxable portion, with the exempt proportion excluded. Specified exceptions from deduction apply under the relevant exception provisions.

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