a. Who is responsible to deduct tax under section 196B of Income Tax Act, 1961?
Any person responsible for making payment to Offshore Fund.
b. Nature of Payment
a) Income from units referred to in section 115AB
b) Long-term capital gain arising from transfer of such units
c. When to Deduct TDS under Section 196B?
At the time of credit of such income to the account of payee or at the time of payment, whichever is earlier.
For this purpose, “payment” can be in cash or by issue of a cheque or draft of by any other mode.
d. Rate of TDS under Section 196B
The rate of tax deduction u/s 196B is 10 %( +SC+H&E Cess)
Section 196B TDS on long term capital gains from units referred to in section 115AB
196B. Where any income in respect of units referred to in section 115AB or by way of long-term capital gains arising from the transfer of such units is payable to an Offshore Fund, the person responsible for making the payment shall, at the time of credit of such income 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.
(Republished with amendments)