CBDT notifies on section 197A of Income-tax Act,1961

Sep 20, 2021 | by Avantis RegTech Legal Research Team

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Finance & Taxation Compliance

The Central Board of Direct Taxes (CBDT) on September 17, 2021 has issued a notification  that no deduction of tax shall be made on the following payment under section 194A of the Income-tax Act, 1961, which specifies, Interest other than “interest on securities”, made by a scheduled bank located in a specified area, to a member of Scheduled Tribe residing in any specified area, as referred to in clause (26) of section 10 of the Income-tax Act, 1961 subject to the following conditions: 

• The payer satisfies itself that the receiver is a member of Scheduled Tribe residing in any specified area, and the payment as referred above is accruing or arising to the receiver as referred to in clause (26) of section 10 of the said Act, during the previous year relevant for the assessment year in which the payment is made, by obtaining necessary documentary evidences in support of the same; 

• The payer reports the above payment in the statements of deduction of tax as referred to in sub- section (3) of section 200 of the said Act; 

• The payment made or aggregate of payments made during the previous year does not exceed twenty lakh rupees. 

[Notification No. S.O. 3815(E)]

 


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