TMI BlogInsertion of new sections 194M and 194N.X X X X Extracts X X X X X X X X Extracts X X X X ..... bour for carrying out any work) in pursuance of a contract or by way of fees for professional services during the financial year, shall, at the time of credit of such sum or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to five per cent. of such sum as income -tax thereon: Provided that no such deduction under this section shall be made if such sum or, as the case may be, aggregate of such sums, credited or paid to a resident during a financial year does not exceed fifty lakh rupees. (2) The provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the business of banking or a post office; (iii) any business correspondent of a banking company or co-operative society engaged in carrying on the business of banking, in accordance with the guidelines issued in this regard by the Reserve Bank of India under the Reserve Bank of India Act, 1934; (2 of 1934.) (iv) any white label automated teller machine operator of a banking company or co-operative society engaged in carrying on the business of banking, in accordance with the authorisation issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007; (51 of 2007.) (v) such other person or class of persons, which the Central Government may, by notification in the O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an account , substitute from one or more accounts . (20) Thus, the amended provision will be: Insertion of new sections 194M and 194N. 46. After section 194LD of the Income-tax Act, the following sections shall be inserted with effect from the 1st day of September, 2019, namely: Payment of certain sums by certain individuals or Hindu undivided family. 194M. (1) Any person, being an individual or a Hindu undivided family (other than those who are required to deduct income-tax as per the provisions of section 194C, section 194H or section 194J responsible for paying any sum to any resident for carrying out any work (inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tain amounts in cash. 194N. Every person, being, (i) a banking company to which the Banking Regulation Act, 1949 (10 of 1949.) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) a co-operative society engaged in carrying on the business of banking; or (iii) a post office, who is responsible for paying any sum, or, as the case may be, aggregate of sums, in cash, in excess of one crore rupees during the previous year, to any person (herein referred to as the recipient) from one or more accounts maintained by the recipient with it shall, at the time of payment of such sum, deduct an amount equal to two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cent. on any sum, or aggregate of sums, paid by an individual or a Hindu undivided family (other than those who are required to deduct income-tax as per the provisions of section 194C or section 194J) to a resident for carrying out any work (including supply of labour for carrying out any work) or by way of fees for professional services at the time of credit 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. The proviso to the said sub-section provides that no incometax referred to in sub-section ( 1 ) shall be deducted, if such sum or aggregate of such sums paid to a resident does not exceed fifty lakh rupees during the financial ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
