THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
New Delhi, the 5th August, 2016 No. 65 /2016
S.O. 2616(E).—In exercise of the powers conferred by sub-clause (f) of clause (iii) of sub-section (3) of section 194A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the Micro Units Development & Refinance Agency Limited (MUDRA) for the purposes of sub-section (3) of said section.
2. This notification shall come into force from the date of its publication in the Official Gazette.
[Notification No. 65/2016/F. No. 275/28/2015-IT (B)]
SANDEEP SINGH, Under Secy.
Editorial Note : Relevant Extract of Section 194A
194A. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of interest other than income by way of interest on securities shall, at the time of credit of such income 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 income-tax thereon at the rates in force :
Provided that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such interest is credited or paid, shall be liable to deduct income-tax under this section.
Explanation.—For the purposes of this section, where any income by way of interest as aforesaid is credited to any account, whether called “Interest payable account” or “Suspense account” or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.
(3) The provisions of sub-section (1) shall not apply—
|(iii)||to such income credited or paid to—|
|(a)||any banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies, or any co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank), or|
|(b)||any financial corporation established by or under a Central, State or Provincial Act, or|
|(c)||the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956), or|
|(d)||the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963), or|
|(e)||any company or co-operative society carrying on the business of insurance, or|
|(f)||such other institution, association or body or class of institutions, associations or bodies] which the Central Government may, for reasons to be recorded in writing, notify in this behalf in the Official Gazette;|