Amendment of section 194A.
59. In section 194A of the Income-tax Act, in sub-section (3), in clause (x), after the words "public sector company" at both the places where they occur, the words "or scheduled bank" shall be inserted.
Notes on Clauses:
Clause 59 of the Bill seeks to amend section 194A which relates to interest other than "interest on securities".
The existing provisions contained in sub-section (3) of the said section provide that the provisions of sub-section (1) of the said section shall not apply in respect of certain income or receipt.
Clause (x) of the said sub-section provides that provisions of subsection (1) shall not be applicable in respect of income paid or payable on zero coupon bond issued by an infrastructure capital company or infrastructure capital fund or public sector company on or after 1st June, 2005.
It is proposed to amend the said clause (x) of sub-section (3) of section 194A so as to include "scheduled bank" after "public sector company". The proposed amendment is consequential in nature.
This amendment will take effect retrospectively from 1st April, 2009.
