Section 75 - Substitution of new sections for section 196 - Direct Tax Laws (Amendment) Act, 1987

75. Substitution of new sections for section 196. For section 196 of the Income-tax Act, the following sections shall be substituted with effect from the 1st day of April, 1988, namely: - 196. Interest or dividend or other sums payable to Government, Reserve Bank or certain corporations. Notwithstanding anything contained in the foregoing provisions of this Chapter, no deduction of tax shall be made by any person from any sums payable to - (i) the Government, or (ii) the Reserve Bank of India, or (iii) a corporation established by or under a Central Act which is, under any law for the time being in force, exempt from income-tax on its income, or (iv) a Mutual Fund specified under clause (23D) of section 10, where such sum is payable to it by way of interest or dividend in respect of any securities or shares owned by it or in which it has full beneficial interest, or any other income accruing or arising to it. 196A. Tax not to be deducted from any sums payable to unit-holders of Mutual Fund. Notwithstanding anything contained in the foregoing provisions of this Chapter, no deduction of tax shall be made by a public sector bank or a public financial institution referred to in clause (23D) of section 10 from any sums payable to unit-holders of a Mutual Fund specified under that clause. .