Amendment of section 194A.
45. In section 194A of the Income-tax Act, in sub-section (3), in clause (x), after the words “infrastructure capital fund or”, the words “infrastructure debt fund or” shall be inserted.
Notes on Clauses:
Clause 45 of the Bill seeks to amend section 194A of the Income-tax Act relating to interest other than “Interest on securities”.
Sub-section (3) of the said section provides that the provisions of sub- section (1) of that section relating to deduction of tax on income by way of interest other than interest on securities, shall not apply.
It is proposed to include infrastructure debt fund also within the purview of clause (x) of the said sub-section so as to provide that tax shall not be deducted on income in relation to a zero coupon bond issued by infrastructure debt fund.
This amendment will take effect from 1st April, 2021.
