Section 75 - Amendment of section 194A. - Finance Act, 2020

Amendment of section 194A. 75. In section 194A of the Income-tax Act,- (I) in sub-section (1), in the proviso, for the words, brackets, letters and figures the monetary limits specified under clause (a) or clause (b) of section 44AB , the words one crore rupees in case of business or fifty lakh rupees in case of profession shall be substituted; (II) in sub-section (3), (A) in clause (i), the Explanation shall be omitted; (B) in clause (iii), after sub-clause (f), the following proviso shall be inserted, namely:- Provided that no notification under this sub-clause shall be issued on or after the 1st day of April, 2020. ; (C) after clause (xi) and before Explanation 1, the following proviso shall be inserted, namely:- Provided that a co-operative society referred to in clause (v) or clause (viia) shall be liable to deduct income-tax in accordance with the provisions of sub-section (1), if- (a) the total sales, gross receipts or turnover of the co-operative society exceeds fifty crore rupees during the financial year immediately preceding the financial year in which the interest referred to in sub-section (1) is credited or paid; and (b) the amount of interest, or the aggregate of the amounts of such interest, credited or paid, or is likely to be credited or paid, during the financial year is more than fifty thousand rupees in case of payee being a senior citizen and forty thousand rupees in any other case. ; (D) after Explanation 1, the following Explanation shall be inserted, namely:- Explanation 2.- For the purposes of this sub-section, senior citizen means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year. ; (III) after sub-section (4), the following sub-section shall be inserted, namely:- (5) The Central Government may, by notification in the Official Gazette, provide that the deduction of tax shall not be made or shall be made at such lower rate, from such payment to such person or class of persons, as may be specified in the said notification. .