Section 194
Requirement to deduct tds under section 194.
Section 194. By rameesh kailasambudget 2020 introduced section 194 o of the income tax i t act. A prior section 194 was renumbered section 194a of this title. 194 o s approach of one size fits all won t work in india considering existing sectoral complexities underlying costs of compliance.
A principal officer of a company which is in the process of declaring dividends equity or preference or both in india is required to deduct tax on dividend covered in the sub clause a or b or c or d or e of clause 22 of section 2. Income tax act has laid the responsibility of deduction of tax at various rates prescribed under section 192 193 and 194 of the income tax act by the person making the payment of income. 109 135 403 i 1 a reenacted heading without change and amended text generally.
4 2 2 in order to remove this difficulty it is provided that the payment gateway will not be required to deduct tax under section 194 0 of the act on a transaction if the tax has been deducted by the e commerce operator under section 194 0 of the act on the same transaction.