CHAPTER III
DIRECT TAXES
Income-tax
Amendment of section 194C.
37. In section 194C of the Income-tax Act, in sub-section (5), with effect from the 1st day of July, 2010,—
(a) for the words "twenty thousand rupees", the words "thirty thousand rupees" shall be substituted;
(b) in the proviso, for the words "fifty thousand rupees", the words "seventy-five thousand rupees" shall be substituted.
Notes on Clauses:
Clause 37 of the Bill seeks to amend section 194C of the Income-tax Act relating to payments to contractors.
Under the existing provisions contained in sub-section (5) of the aforesaid section, no deduction of income-tax shall be made from the amount of any sum credited or paid or likely to be credited or paid to the account of, or to, the contractor if such sum does not exceed twenty thousand rupees. However, if the aggregate of such sums credited or paid or likely to be credited or paid during the financial year exceeds fifty thousand rupees, the person responsible for paying such sums shall be liable to deduct income-tax.
It is proposed to enhance the said limit from twenty thousand rupees for a single transaction to thirty thousand rupees and from fifty thousand rupees for the aggregate transactions during the financial year to seventy five thousand rupees.
These amendments will take effect from 1st July, 2010.
