Newly Inserted Sec.194LBA

It is proposed to release new version of NSDL Return Preparation Utility (RPU) and File Validation
Utility (FVU) incorporating the below features:
Features of NSDL RPU

• Allow update in field in Form no. 27Q “Whether TDS rate of TDS is IT act (a) and DTAA (b)”
where the tax has been deducted at higher rate.

• Incorporation section code:
o “194LBA” & “194DA” have been added for below forms which will be applicable for a
statement pertaining to FY 2014-15 & Q3 onwards.
– Section code 194LBA will be applicable for Form 26Q and 27Q.
– Section code 194DA will be applicable only for Form 26Q.
– For section code “194LBA”, select “4BA” from the dropdown of section code column
in Annexure I sheet.

– For section code “194DA”, select “4DA” from the dropdown of section code column in
Annexure I sheet.
• Latest FVU versions incorporating latest validations.
Utilities incorporating the above features will be available for download at TIN website (
Features of FVU
• Incorporation section code“194LBA” & “194DA” for Form 26Q
• The said section codes will be applicable for TDS statement pertaining to FY 2014-15 (Q3
onwards).
www.tinnsdl.com)

AS PER INCOMTAXINDIA:
Insertion of new section 194LBA.
58. After section 194LB of the Income-tax Act, the following section shall be inserted with effect from the 1st day of the October, 2014, namely:—
“194LBA. Certain income from units of a business trust.— (1) Where any distributed income referred to in section 115UA, being of the nature referred to in clause (23FC) of section 10, is payable by a business trust to its unit holder being a resident, the person responsible for making the payment shall at the time of credit of such payment to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of ten per cent.

(2) Where any distributed income referred to in section 115UA, being of the nature referred to in clause (23FC) of section 10, is payable by a business trust to its unit holder, being a non-resident, not being a company or a foreign company, the person responsible for making the payment shall at the time of credit of such payment to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of five per cent.”.

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