The 60-second version
Section 194LBA requires 10% TDS on distribution by REIT to resident unit-holders — pass-through under Section 115UA with separate TDS on rental, dividend, and interest components.
194LBA is REIT distribution — 194LB is InvIT lane
Section 194LBA applies when a real estate investment trust pays distribution to a resident unit-holder — 10% TDS deducted by trust at payout.
REIT income is pass-through under Section 115UA — declare rental, dividend, and interest components in ITR even after TDS credit.
InvIT lane: Section 194LB guide for infrastructure trust distributions at same 10% rate.
Business trust TDS matrix
| Section | Rate | Trust type |
|---|---|---|
| 194LBA | 10% | REIT distribution |
| 194LB | 10% | InvIT distribution |
| 194LBB | 10% | SPV interest to trust |
| 115UA | Pass-through | Tax in unit-holder hands |
194LBA sequence
Distribution
REIT declares payout.
10% TDS
Trust deducts under 194LBA.
26AS
Verify trust TAN credit.
ITR
Declare pass-through components.
Refund check
Claim excess TDS if slab lower.
Flow
194LBA 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 on unit-holder leg.
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0 of 4 checked
vs 194LB?
194LBA REIT; 194LB InvIT — both 10% on resident distribution.
Capital gains on units?
Section 112A if listed — separate from distribution TDS.
RNOR?
Indian REIT distribution taxed from resident date.
Form 15G?
If total income below exemption before REIT credit.
Foreign REIT?
Schedule FA — not 194LBA chain.
TDS refund?
Claim in ITR if tax due below TDS.
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