TDS Section 196A — Income from units of mutual fund to non-resident
FY 2025-26 · Rate 20% (subject to DTAA — typically 5-15%)
What does this section cover?
TDS on income from mutual fund units paid to a non-resident or foreign company.
Why this section: Non-resident MF investors face 20% TDS on income distributions — DTAA can sharply reduce this if TRC filed.
Key facts
- Threshold
- No threshold
- Applicable for
- FY 2025-26
- Who deducts
- Mutual fund / AMC
- Paid to
- Non-resident unit-holder
- Statutory source
- Section 196A, Income Tax Act
Common terms accountants use
If your description mentions any of these, Section 196A 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.
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.
Search TDS sections →Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.