Exemption of deduction of tax at source on payment of Dividend to business trust in whose hand dividend is exempt

Budget 2021-22 + FINANCE Bill, 2021

Exemption of deduction of tax at source on payment of Dividend to business trust in whose hand dividend is exempt

Section 194 of the Act provides for deduction of tax at source (TDS) on payment of dividends to a resident. The second proviso to this section provides that the provisions of this section shall not apply to such income credited or paid to certain insurance companies or insurers. It is proposed to amend second proviso to section 194 of the Act to further provide that the provisions of this section shall also not apply to such income credited or paid to a business trust by a special purpose vehicle or payment of dividend to any other person as may be notified.

This amendment will take effect retrospectively from 1st April, 2020.

[Clause 44]

Full Text:

Budget 2021-22 + FINANCE Bill, 2021

Dated: 1-2-2021