Amended and updated notes on section 194LB of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Income by way of interest from infrastructure debt fund.
Chapter XVII (Sections 190 to 234G) of the Income Tax Act 1961 deals with the provisions related to collection and recovery of tax. Section 194LB of IT Act 1961 provides for Income by way of interest from infrastructure debt fund.
Recently, we have discussed in detail section 194LA (Payment of compensation on acquisition of certain immovable property) of IT Act 1961. Today, we learn the provisions of section 194LB of Income-tax Act 1961. The amended provision of section 194LB is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 194LB of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.
Section-194LB: Income by way of interest from infrastructure debt fund
Where any income by way of interest is payable to a non-resident, not being a company, or to a foreign company, by an infrastructure debt fund referred to in clause (47) of section 10, the person responsible for making the payment shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of five per cent.