Amendment of section 194A
54. In section 194A of the Income-tax Act, in sub-section (3), after clause (x), the following clause shall be inserted with effect from the 1st day of October 2014, namely:––
“(xi) to any income by way of interest referred to in clause (23FC) of section 10.”.
Notes on Clauses:
Clause 54 of the Bill seeks to amend section 194A of the Income-tax Act relating to deduction of tax at source on interest other than “interest on securities”.
It is proposed to insert a new clause (xi) in sub-section (3) of section 194A so as to exempt from deduction of tax at source, the interest income payable by special purpose vehicle to a business trust.
This amendment will take effect from 1st October, 2014.
