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TDS Section 194LBB Income from investment fund (AIF Cat I & II)

FY 2025-26 · Rate 10% (resident); rates in force (non-resident)

Section
194LBB
Rate (with PAN)
10% (resident); rates in force (non-resident)
Rate (no PAN)
20%

What does this section cover?

TDS on income paid by Category I / II Alternative Investment Fund (AIF) to investors.

Why this section: Cat I/II AIFs (VC, PE, infra funds) deduct TDS at 10% on income passed through to resident investors.

Key facts

Threshold
No threshold
Applicable for
FY 2025-26
Who deducts
AIF Category I / II
Paid to
Investor (resident or non-resident)
Statutory source
Section 194LBB, 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 194LBB 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.

aifalternative investment fundvc fundventure capital fundpe fund

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.