Central relaxes TDS provisions u/s 194A of Income Tax Act

Central relaxes TDS provisions u/s 194A of Income Tax Act According to section 197A of the Income Tax Act, 1961 (the "Act"), the Central Government notified that no tax deduction shall be made on the following payment under section 194A, namely payment in nature of interest other than interest on securities, made by a Scheduled Bank (hereinafter the "payer") located in a specified area to a Scheduled Tribe member (hereinafter the "receiver") residing anywhere. i. If the payer has documentary evidence proving that the recipient is a Scheduled Tribe member living in a specified area, and the payment as described above has accrued or arisen to the recipient as defined in Section 10(26) of the Act during the previous taxation year relevant to the assessment year in which the payment is made, the payment is made. ii. Section 200, paragraph (3), requires the payer to include the aforesaid amount in his or her tax deduction statements. iii. Payments made in the previous year or the total of payments made in the preceding year do not exceed Rs. 20 lakh. According to the notification, a "Scheduled Bank" is one that is listed in the Reserve Bank of India Act, 1934's Second Schedule. The notification number 110/2021, dated September 17th, 2021, been sent out. It can be found on two websites: www.incometaxindia.gov.in and www.egazette.nic.in.