The Center has relaxed the provisions of the Income Tax Act, Act of 1961 in relation to the payment of interest in respect of TDS by a scheduled bank to a member of the scheduled tribe (ST) community on Friday .
Watch Zee Business Live TV broadcast below:
In the order, the finance ministry said, “no tax deduction will be made on the next payment under section 194A of the Act, that is, the payment in the nature of interest, other than interest on securities, made by a Programmed Bank (hereinafter, the `payer`) located in a specified area to a member of the Programmed Tribe (hereinafter, the` receiver`) residing in any specified area as mentioned on p.10 (26) of the law.
“The order read:” The payer ensures that the receiver is a member of the Programmed Tribe residing in any specified area, and the payment as mentioned above accrues or arises for the receiver as indicated in section 10 ( 26) of the Law, during the previous year relevant to the year of appraisal in which the payment is made, by obtaining the necessary documentary evidence to support it.
The central government relaxes the provisions of TDS u / s 194A of the Income Tax Act of 1961 in light of section 10 (26) of the act.
– GDP India (@PIB_India) September 18, 2021
“The order further stated that the payment made or the sum of the payments made during the previous year does not exceed twenty lakh rupees.
‘Programmed bank’ means a bank included in the Second Schedule of the Reserve Bank of India Act 1934.