Amendment of section 194-IB.
46. In section 194-IB of the Income-tax Act, in sub-section (4), for the words, figures and letters “section 206AA, such”, the words, figures and letters “section 206AA or section 206AB, such” shall be substituted with effect from the 1st day of July, 2021.
Notes on Clauses:
Clause 46 of the Bill seeks to amend section 194-IB of the of the Income-tax Act, relating to payment of rent by certain individuals or Hindu undivided family.
Sub-section (1) of the said section provides that any person, being an individual or a Hindu undivided family (other than those referred to in the second proviso to section 194-I), responsible for paying to a resident any income by way of rent exceeding fifty thousand rupees for a month or part of a month during the previous year, shall deduct an amount equal to five per cent. of such income as income-tax thereon.
Sub-section (4) of the said section provides that in a case where the tax is required to be deducted as per the provisions of section 206AA, such deduction shall not exceed the amount of rent payable for the last month of the previous year or the last month of the tenancy, as the case may be.
It is proposed to amend the said sub-section (4) so as to insert section 206AB for the purposes of the said sub-section.
This amendment will take effect from 1st July, 2021.
