Section 194K - Income in respect of units (as amended by Finance Act 2025)

• Applicability

Any person responsible for paying to a resident any income in respect of -

(a) units of a mutual fund

(b) units from the specified company

(c) units from the Administrator of the specified undertaking

shall deduct TDS, if amount of such income or aggregate of amounts of such income paid or credited during the financial year exceeds Rs. 10,000.

• Rate of TDS

TDS shall be deducted @ 10%

• Time for deducting TDS

At the time of credit of such Income to the account of payee or at the time of payment whichever is earlier.

Note : Provisions of this Section shall not apply, if the income paid or credited is of the nature of capital gains.