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TDS Section 194LBA Distribution by business trust (REIT/InvIT)

FY 2025-26 · Rate 10% (resident) / 5% (non-resident interest) / 10% (non-resident dividend)

Section
194LBA
Rate (with PAN)
10% (resident) / 5% (non-resident interest) / 10% (non-resident dividend)
Rate (no PAN)
20%

What does this section cover?

TDS on income distributed by business trust to unit-holders.

Why this section: REITs/InvITs pass through SPV income to unit-holders; trust withholds TDS based on the income type and residency.

Note: Different rates for interest, dividend, rental income components passed through.

Key facts

Threshold
No threshold
Applicable for
FY 2025-26
Who deducts
Business trust (REIT, InvIT)
Paid to
Unit-holder (resident or non-resident)
Statutory source
Section 194LBA, Income Tax Act
Compute and file this TDS with CAhelperFree TDS computation, Form 26Q prep, challan generation — Part of KLI.

Common terms accountants use

If your description mentions any of these, Section 194LBA is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.

reit distributioninvitbusiness trustreal estate trustinfrastructure trust

Related TDS sections

Other sections in the same series or adjacent. Useful when narrowing down between similar payment categories.

Need a different section?

Describe the payment in plain English — “rent of plant”, “senior citizen interest”, “NRI dividend” — and the matcher will surface the right section.

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Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.