TDS Section 196B — Income from units / LTCG to offshore fund
FY 2025-26 · Rate 10% (12.5% on LTCG from Apr 2025 under Finance Act 2024)
What does this section cover?
TDS on income from units of Mutual Fund specified under section 10(23D) and on long-term capital gains paid to offshore funds (Sec 115AB).
Why this section: Offshore funds investing in Indian mutual funds face concessional 10-12.5% TDS on income and LTCG.
Key facts
- Threshold
- No threshold
- Applicable for
- FY 2025-26
- Who deducts
- Person making payment to offshore fund
- Paid to
- Offshore Fund (Section 115AB)
- Statutory source
- Section 196B, Income Tax Act
Common terms accountants use
If your description mentions any of these, Section 196B 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.