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Income tax - income from business trust

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This query is : Resolved

Vaibhav Gupta (Querist)
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20 December 2025 Need help related to query

One of my clients has received income from business trust (powergrid investment infrastructure trust) and tds is also deducted under section 194LBA. He has shown this income in his ITR under the head of income from other sources at normal rate.

Now the income tax department has sent notice that income from business trust is not shown in your ITR. Kindly show this income under income from other sources at the specified rate.

Please help me in this regard

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)
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20 December 2025 Section 194LBA mandates TDS on these distributions before payment to unit holders.

• Interest/Dividend/Rental Income:
• Report under Schedule OS (Income from Other Sources).
• Select the relevant head (interest/dividend/rental).

Interest income (u/s 10(23FC)) – Taxable in the hands of unit holders.
• Dividend income (u/s 10(23FC)(a)) – Taxable post 01.04.2020 in the hands of unit holders.
• Rental income (REITs only, u/s 10(23FCA)) – Taxable in the hands of unit holders.

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