Section 194F of Indian Income Tax Act

Section 194F

After section 194E of the Income-tax Act, the Section 194F inserted with effect from the 1st day of April, 1991. Payments on account of repurchase of units by Mutual Fund or Unit Trust of India”

Section 194F of Income Tax Act

Section 194F

Section 194F of the Income Tax Act, 1961 covers the provisions related to TDS deduction on payments; on account of repurchase of units of Mutual Fund or Unit Trust of India. Unit Trust of India is liable to deduct TDS on the repurchase of units issued by them.

As per this section, any person responsible for paying to any person any amount as referred to in section 80CCB(2); shall deduct income tax at 20% at the time of payment thereof.

In case of deduction by or on behalf of the government; the time for deposit of TDS is on the same day. But in case of non-government entities, TDS must be deposited within 1 week from the end of the month of the tax deduction.

There is no provision to get the payment without tax deduction or with the lower tax deduction.

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