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CBDT amends section 194A with respect to the receiver as specified in section 10(26) of Income tax act

extension of form 10a / 10ab

—In exercise of the powers conferred by sub-section (1F) of section 197A of the
Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that no deduction of tax shall be
made on the following payment under section 194A of the said Act, namely payment in the nature of
interest, other than interest on securities, made by a scheduled bank (hereinafter the “payer”) located in a
specified area, to a member of Scheduled Tribe (hereinafter the “receiver”) residing in any specified area, as
referred to in clause (26) of section 10 of the said Act, subject to the following conditions:
(i) the payer satisfies itself that the receiver is a member of Scheduled Tribe residing in any
specified area, and the payment as referred above is accruing or arising to the receiver as
referred to in clause (26) of section 10 of the said Act, during the previous year relevant for the
assessment year in which the payment is made, by obtaining necessary documentary evidences
in support of the same;
(ii) the payer reports the above payment in the statements of deduction of tax as referred to in subsection (3) of section 200 of the said Act;
(iii) the payment made or aggregate of payments made during the previous year does not exceed
twenty lakh rupees.
Explanation.- For the purposes of this notification, the expression “scheduled bank” shall have the
same meaning as assigned to it in clause (e) of section 2 of the Reserve Bank of India Act, 1934
(2 of 1934).
2. This notification shall come into force from the date of its publication in the Official Gazette.

To view and download the Notification click here

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