Section 194LBB of the 1961 Act → Section 393, Table Sl. 4(iii) of the 2025 Act
Tax deducted on income from investment funds.
Quick answer
Section 194LBB of the Income-tax Act, 1961 corresponds to Section 393, Table Sl. 4(iii) of the Income-tax Act, 2025. Relationship: Split or consolidated. Correspondence verified against both Acts.
How it works
A Category I or II fund deducts tax when it credits or pays income to unit holders.
Example
A resident receives a ₹5 lakh payout: the fund deducts ₹50,000 (10%).
What you need to do
Fund: deduct and deposit the tax. Investor: claim credit for it in the return.
What changed?
- The rule is now one row of the consolidated table in section 393, alongside other deduction rules.
- Read the complete new provision, including its conditions, exceptions and related provisions, when applying it.
The two texts, side by side
1961 · Section 194LBB194LBB. Where any income, other than that proportion of income which is of the same nature as income referred to in clause …
2025 · Section 393, Table Sl. 4(iii)(iii) Any income, other than that proportion of income which is exempt under Schedule V (Table: …
Excerpts end with … where the provision continues. Last reviewed 24 October 2026.
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Meet the expert
CS Prashant Kumar
Company Secretary & Compliance Officer
Global Horizons Capital Advisors (IFSC) Private Limited — an IFSCA-licensed investment banker
Published in The Chartered Accountant (Jun 2025, Jan 2025, Mar 2024) and Chartered Secretary (Aug 2023)
Prashant Kumar is a seasoned Company Secretary and corporate governance strategist with more than 13 years of experience advising large corporates, promoter-led groups and global businesses on compliance, regulatory risk and board governance. In GIFT IFSC, the IFSCA regime is his day job rather than a research topic.