No Sec. 194A TDS on interest paid to resident of Scheduled Tribes areas specified u/s 10(26) Notification No. 110/2021, dated 17-09-2021
- Blog|Income Tax|News|
- 67 Views
- 2 Min Read
- By Taxmann
- Last Updated on 20 September, 2021
The Central Government has relaxed the provisions of tax deducted at source (TDS) under Section 194A on payment made to members of Scheduled Tribe residing in the specified area.
The Govt. has notified that no deduction of tax shall be made under section 194A on the payment in the nature of 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 section 10(26). However, the exemption is available subject to the fulfillment of the following conditions:
1) The Scheduled Bank satisfies itself that the receiver is a member of Scheduled Tribe residing in any specified area, and the payment is accruing or arising to, during the previous year relevant for the assessment year in which the payment is made. The bank is also required to obtain necessary documentary evidence in support of the same;
2) The Scheduled Bank reports the interest payment in the statements of deduction of tax as referred to in section 200(3); and
3) The payment made or aggregate of payments made during the previous year does not exceed Rs. 20 lakh.
1. Section 10(26) has list down following areas as ‘Specified Area’:
(a) Any area specified in Part I or Part II of the Table appended to paragraph 20 of the Sixth Schedule to the Constitution;
(b) The States of Arunachal Pradesh, Manipur, Mizoram, Nagaland and Tripura;
(c) The areas covered by notification no. TAD/R/35/50/109, dated the 23-02-1951, issued by the Governor of Assam under the proviso to paragraph 20(3) as it stood immediately before the commencement of the North-Eastern Areas (Reorganisation) Act, 1971; or
(d) The Ladakh region of the State of Jammu and Kashmir.
2. ‘Scheduled bank’ shall have the same meaning as assigned to it in clause (e) of section 2 of the Reserve Bank of India Act, 1934.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of Editor-In-Chief Mr. Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in our publications and research platform. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- Keep the readers abreast with the latest developments in the judicial and legislative fields
- Prepare the analytical write-ups on recent, controversial, and contagious issues to help the readers to understand the event and its implications
- Every content published by Taxmann should be complete, accurate and lucid
- All evidence-based statements must be supported with proper reference to Section, Circular No., Notification No., or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Choose a font and size that’s easy to read, and remain consistent across all imprint and digital publications