Table [For Payments to Non-Resident]-Income in respect of Units of Mutual Fund or Specified Company

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.... Sl. No. Nature of payment Recipient Deductor Rate of TDS 10 (a) Income in respect of units of a Mutual Fund specified under Schedule VII (Table: Sl. No. 20 or 21); or (b) Income in respect of units from the specified company Non-resident (other than a company) or a foreign company Any person As per Note 2 Scope of the provision This clause applies to....

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....deducted at the rate of 20%. However, where the payee is entitled to the benefit of an agreement referred to in section 159(1) or section 159(2) and furnishes the certificate referred to in section 159(8), tax shall be deducted at the rate specified in such agreement, if that rate is lower than 20%. Thus, the provision permits application of the beneficial treaty rate where the prescribed condi....

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.... • The deductor may be any person responsible for making the payment. • The default rate of TDS is 20% under Note 2. • A lower treaty rate may be applied where the conditions of section 159 are satisfied and the prescribed certificate is furnished. • No monetary threshold has been prescribed. Comparative Analysis: Section 196A (Income-....