CBDT notifies Sections for Non-Deduction of TDS when payee is IFSC [Read Notification]

The Central Board of Direct Taxes (CBDT) has notified that no deduction of tax shall be made under the provisions of the Income-tax Act in respect of payment made to Unit of International Financial Services Centre, (hereinafter referred as ‘payee’). The Relevant TDS provisions as per Income tax Act, 1961 where no-TDS will be deducted are:

The Notification has been issued In exercise of the powers conferred by sub-section (1F) of section 197A read with subsection (1A) and sub-section (2) of section 80LA of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred as the Income-tax Act). This notification shall come into force on 1st day of April, 2024.

The unit of International Financial Services Centre (IFSC) is required to furnish Form No. 1 to obtain this benefit.

Click on the Link given below to Download the Notification.