The 60-second version
Section 194LB requires 10% TDS on distribution by InvIT to resident unit-holders — pass-through under Section 115UA with separate TDS on interest and dividend components.
194LB is InvIT distribution — 194LBA is REIT lane
Section 194LB applies when an infrastructure investment trust pays distribution to a resident unit-holder — 10% TDS deducted by trust.
InvIT income is pass-through under Section 115UA — declare components in ITR even after TDS.
REIT lane: Section 194LBA at 10% for REIT distributions — different section number.
Business trust TDS matrix
| Section | Rate | Trust type |
|---|---|---|
| 194LB | 10% | InvIT distribution |
| 194LBA | 10% | REIT distribution |
| 194LBB | 10% | SPV interest to trust |
| 115UA | Pass-through | Tax in unit-holder hands |
194LB sequence
Distribution
InvIT declares payout.
10% TDS
Trust deducts.
26AS
Verify trust TAN.
ITR
Declare pass-through income.
Form 67
If foreign InvIT overlap.
Flow
194LB kit
- Distribution stmt.
- TDS cert.
- 26AS.
- PAN.
- ITR ACK.
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NRI folio
Redesignate demat KYC to resident before next distribution — else NRI TDS rate may apply.
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vs 194LBA?
194LB InvIT; 194LBA REIT.
Capital gains on units?
Section 112A if listed — separate from distribution TDS.
RNOR?
Indian InvIT distribution taxed from resident date.
Form 15G?
If total income below exemption.
Foreign InvIT?
Schedule FA — not 194LB.
TDS refund?
Claim in ITR if tax due below TDS.
Your tax year is already running.
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