Income-tax Return: Central Government relaxes provisions of TDS u/s 194A of the Income-tax Act, 1961 in view of section of 10(26) of the Act

The Central Government in exercise of the powers conferred by sub-section(1F) of section 197A of the Income-tax Act, 1961(“the Act”) notified that no deduction of tax shall be made on the following payment under section 194A of the 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 s.10(26) of the Act, subject to the following conditions:

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  1. 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 section 10(26) of the 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;
  2. the payer reports the above payment in the statements of deduction of tax as referred to in sub-section (3) of section 200 of the Act;
  3. the payment made or aggregate of payments made during the previous year does not exceed twenty lakh rupees.

           For the purposes of the said notification, ‘Scheduled Bank’ means a bank included in the Second Schedule of the Reserve Bank of India Act,1934.

Notification no. 110/2021 dated 17th September, 2021 has been issued. It is available on www.incometaxindia.gov.in and also on www.egazette.nic.in .

22 thoughts on “Income-tax Return: Central Government relaxes provisions of TDS u/s 194A of the Income-tax Act, 1961 in view of section of 10(26) of the Act

  1. Let the IT Department and Finance ministry first ensure the Tax Payers do not face any problems in filing returns online for AY: 2021-22. This new portal is absolutely ” Users Unfriendly “

    1. I filed my online return on 11th Sep. and also got my Refund intimation within a week. Did not face any major problem, except that few incomes like SB interest, interest on last year tax Refund etc had to be entered manually. What more can you expect, compared to old times when Refund Orders took a year or more

      1. Dear that could be isolated case perhaps you have been from salaried one
        Today even other itrs forms 5 6 7 have not been in operation
        Only multiple users being professional knows where shoe pinches and punches

        Re

      2. For me I did August 19th only sep 12 th completion process is shown no payment related intimation is not yet come

      3. I have submitted my return on 2nd August and confirmation received but till date it has not been processed hence not received refund. Whereas last year I received the refund within three weeks of submission. It’s clear that the IT department as well as the the FM mm sitharaman both are in awkward position by giving the contract to Infosys at 4000 crores and the matter is in such a critical situation that return submission date has to be extended further upto next year. How funny!!!

  2. Facing lots of problem during form. Needs to simplify more.Even last year form was more easy than current form.

  3. Current filing income tax portal should be discontinued with immediate effect and previous operating e-filing system should be paired to complete ITR FILINGS of F.Y.20-21. All the Glitiches if new portal should be rectified and in coming AY. 22-23 may be used by Government. Help of software engineers may be sought from abroad like country USA.UK.GERMANY Well versed with system.

  4. The tax on dividend from individual investors is becoming a nuisance. Fail to understand why individual investors are burdened with this nuisance tax deduction and related bulky paper work. This is foolish loading the system with inconsequential monies considering the difficulty this is creating.

  5. The terms “Financial Year -FY and ” Assessment Year” used by Income Tax Department refers to the Financial Year, eg FY 202021 and this also refered as AY 202122 and discussions go on referring Assessment Year.
    It is invariably not completed and may drag on beyond that.
    It’s confusing for a layman and he has to work back one year to find which Financial Years are being Refered to.
    Just keep and use the term FINANCIAL YEAR & FORGET the term ASSESSMENT YEAR.
    THANK YOU

  6. J. Venkatesaperumal mail ID j. Venkatesaperumal @gmail.com I am a retd district Judge filing it return promptly I received refund of excess tax by Jan 2021, and govt of India issued certificate in appreciation. It is our duty to pay tax.

  7. This new ITR filing is useless and uncalled for. No tax payer requested the PM or FM to do that. Just favoratism only to Infosis. The old tax portal was introduced during Congress time and so Modi wants to discontinue that.

  8. Filed my return on 3rd Sept. 21.The TDS on dividend shown in 26AS is correct but TDS amount in the form popped up is less. We can not change. However I filed my greviance for this on 4th Sept. 21.

  9. Even though due date is extended for filing return under sec 234a int is added to tax which is incorrect. Can’t they add patch to software to remove that.

  10. What was the necessity to modify the whole efilling process .Previous system was user friendly.It was really not required.The modification could definately deffered to next A.Y

  11. Change is for better; not for worse. New IT Portal with nomenclature “Jason” application software appears to be the tasks of some over- enthusiastic approach of Infosys that made it challenging to sort out the puzzles while filing various IT Forms as per category. This is purely an ill conceived idea. All along I filed my IT(Sahaj) but this time I had to struggle a lot to file it because the Structures with so many “hyperlinks” to clear the meaning of various Sections/ Sub-sections. It basically looked like “Lawyer’s Love Letter”. The recipient of Letter got confused if Lawyer really loved at all due to so many ; if, not, but, hereinafter, therefore, thereafter, subject to, etc etc etc. Anyway I submitted my e-filing on 08/08/2021 after lot of study materials of IT Department and received intimation of processing with Refund on 16/09/2021. IT Return was also e-verified on same date with Acknowledgment Number but failed to download the filed return to see I really did it correctly or not. Jason betrayed me followed by CPC E-filing, Bangalore raising their hands surrendering to answer. This elaboration sounds irritating but who is responsible? New portal must be subjected to mock-testing before uploading that was utterly ignored by technology vendors. Funny.

  12. Please discontinue new efiling system as it is not a good system at all old one was good.
    Otherwise many people cannot file the returns in time which will create so many problem.
    PLEASE discontinue the new one.
    Otherwise all will go for manual one.

  13. I filed my return on 13 June and till date it has not been processed. Where as every week I read so many lakh cr has been refunded. Who knows how much is factual. My refund is only 3K.

  14. After a Herculean and a Himalayan attempt I was able to scale the summit called ITR filing on 17th August 2021. The old website was truly user-friendly and is very simple to use and file the returns. The change over from old to new is akin to frying pan into fire!! It is utter shame that a behemoth and a bellweather of IT companies Infosys is to still search for ways and mean to wriggle out of the maze and blind alleys of glitches and setbacks. What an ignoble cul-de-sac !!. The once Numero Ono is now a humiliating zero and has gone from Sublime to ridiculous !!!.

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