Tax Ready Reckoner

Section 194LA of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on payments made as compensation for the compulsory acquisition of immovable property (excluding agricultural land). Below is a detailed breakdown of its provisions: 1. Applicability of Section 194LA ✅ Covered Transactions: Compensation or enhanced compensationpaid for compulsory acquisition of: Land(non-agricultural). Buildingsor parts of buildings. Applies to payments by: Government […]

Section 194LB of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on interest payments made to non-residents or foreign companies by Infrastructure Debt Funds (IDFs). Below is a detailed breakdown of its provisions: 1. Applicability of Section 194LB ✅ Covered Payments: Interest paid by an Infrastructure Debt Fund (IDF)registered under SEBI Regulations, 2011. Payments to: Non-resident individuals(not companies). Foreign companies. ❌ Exemptions: Payments

Section 194LBA of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on specific income distributed by business trusts (like REITs and InvITs) to their unit holders. Below is a detailed breakdown of its provisions, rates, and compliance requirements: 1. Applicability of Section 194LBA ✅ Covered Payments: Interest incomefrom Special Purpose Vehicles (SPVs) [Section 10(23FC)(a)]. Dividend income(if taxable in the

Section 194LBB of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on income distributed by Category I & II Alternative Investment Funds (AIFs) to their investors. Below is a structured breakdown of its provisions: 1. Applicability of Section 194LBB ✅ Covered Payments: Income from Category I & II AIFs(e.g., Venture Capital Funds, Private Equity Funds). Includes: Interest Dividends Other income(excluding

Section 194LBC of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on income distributed by Securitisation Trusts (STs) or Category III Alternative Investment Funds (AIFs) to investors. Below is a structured breakdown of its provisions: 1. Applicability of Section 194LBC ✅ Covered Payments: Income distributed by Securitisation Trusts(e.g., from loan pools, asset-backed securities). Income from Category III AIFs(hedge funds, PIPE funds). Includes: Interest

Section 194LC of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on interest payments made by Indian companies or business trusts to non-residents (excluding companies) or foreign companies for specified foreign borrowings. Below is a structured breakdown of its provisions, rates, and compliance requirements: 1. Applicability of Section 194LC ✅ Covered Payments: Interest on foreign currency borrowings(ECBs) under loan agreements (July 1,

Section 194LD of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on interest income paid to Foreign Institutional Investors (FIIs) or Qualified Foreign Investors (QFIs) from specific Indian debt instruments. Below is a structured breakdown of its provisions, rates, and compliance requirements: 1. Applicability of Section 194LD ✅ Covered Payments: Interest on rupee-denominated bondsissued by Indian companies. Interest on Government securities(e.g., sovereign bonds).

Section 194M of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on certain payments made by individuals or HUFs who are not liable for tax audits under Section 44AB. Below is a structured breakdown of its provisions: 1. Applicability of Section 194M ✅ Covered Payments (if aggregate exceeds ₹50 lakh/year): Contractual payments(e.g., freelancers, consultants, contractors). Commission/brokerage(excluding insurance commission under Section 194D). Professional fees(e.g.,

Section 194N of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on cash withdrawals exceeding specified limits from banks, co-operative societies, or post offices. This provision aims to discourage large cash transactions and promote digital payments. 1. Applicability of Section 194N ✅ Covered Transactions: Cash withdrawals from: Banks(including private/public sector). Co-operative banks. Post offices. ❌ Exemptions: Withdrawals by government entities. Withdrawals

Section 194-O of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on payments made by e-commerce operators to resident e-commerce participants for sales of goods/services facilitated through digital platforms. Introduced in 2020, this provision ensures tax compliance in the growing digital economy. 1. Applicability of Section 194-O ✅ Covered Transactions: Payments by e-commerce operators(e.g., Amazon, Flipkart) to resident participants (sellers/service providers) for: Sale of