Section 194N of the Income Tax Act, 1961

As you all aware from 1st September 2019  every i)Banking Company ii) Co-operative society  iii) Post office who is responsible for paying any sum, or, as the case may be, aggregate of sums, in cash, in excess of one crore rupees during the previous year, to any person (herein referred to as the recipient) from one or more accounts maintained by the recipient with it shall, at the time of payment of such sum, deducts an amount equal to Two per cent of sum exceeding one crore rupees, as income-tax

Persons Covered

  1. Banking Company: a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act)
  2. Co-operative Society: a co-operative society engaged in carrying on the business of banking.
  • Post Office

 

Exemption:

Payment made to,—

  1. The Government
  2. Any Banking Company co-operative society engaged in carrying on the business of banking or a post office
  • any business correspondent of a banking company or co-operative society engaged in carrying on the business of banking, in accordance with the guidelines issued in this regard by the Reserve Bank of India under the Reserve Bank of India Act, 1934 (2 of 1934);

any white label automated teller machine operator of a banking company or co-operative society engaged in carrying on the business of banking, in accordance with the authorization issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007 (51 of 2007);

Category: R S Shashi & Co

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