Tax Deduction at source on Floating Rate Savings (Taxable) Bonds (FRSB) 2020 (WIDENING AND DEEPENING OF TAX BASE AND ANTI-AVOIDANCE)

Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

Section 193 of the Act provides for deduction of tax at source on payment of any income to a resident by way of interest on securities.

2. The Government has introduced Floating Rate Savings (Taxable) Bonds (FRSB) 2020. The provisions of section 193 of the Act are proposed to be amended to allow for deduction of tax at source at the time of payment of interest exceeding ten thousand rupees on ––

I. the Floating Rate Savings Bonds (FRSB) 2020 (Taxable) and

II. any security of the Central Government or State Government, as the Central Government may, by notification in the Official Gazette, specify in this behalf.

3. The amendments will take effect from the 1st day of October, 2024.

[Clause 51]

Full Text:

Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

Dated: 24-7-2024