Insertion of new section 194-IC.
64. After section 194-IB of the Income-tax Act as so inserted, the following section shall be inserted, namely:-
Payment under specified agreement.
“194-IC. Notwithstanding anything contained in section 194-IA, any person responsible for paying to a resident any sum by way of consideration, not being consideration in kind, under the agreement referred to in sub-section (5A) of section 45, shall at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per cent. of such sum as income-tax thereon.”.
Notes on Clauses:
Clause 64 of the Bill seeks to insert a new section 194-IC in the Income-tax Act relating to deductions in respect of payment under specified agreement.
The proposed new section seeks to provide that notwithstanding anything contained in section 194-IA, any person responsible for paying to resident any sum by way of consideration, not being consideration in kind, under the agreement referred to in sub-section (5A) of section 45, shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per cent. of such sum as income-tax thereon.
This amendment will take effect from 1st April, 2017.
