Amendment of section 194-I.
44. In section 194-I of the Income-tax Act, with effect from the 1st day of June, 2015, after the second proviso, the following proviso shall be inserted, namely:-
“Provided also that no deduction shall be made under this section where the income by way of rent is credited or paid to a business trust, being a real estate investment trust, in respect of any real estate asset, referred to in clause (23FCA) of section 10, owned directly by such business trust.”.
Notes on Clauses:
Clause 44 of the Bill seeks to amend section 194-I of the Income-tax Act relating to rent.
The aforesaid section provides for deduction of tax at source on payment of any income by way of rent to a resident.
It is proposed to amend the said section by inserting a proviso that no deduction shall be made under the section where the income by way of rent is credited or paid to a business trust, being a real estate investment trust, in respect of any real estate asset, referred to in clause (23FCA) of section 10, owned directly by such business trust.
This amendment will take effect from 1st June, 2015.
