Home India Ministry of Finance Exemption for RBI from Section 206AB...
Date: 27-May-2024 Category: Extra Ordinary State: Union Government Country: India

Exemption for RBI from Section 206AB

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

What it means

  • The notification S.O. 2107(E) issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, notifies the Reserve Bank of India (RBI) as a specified person under clause (ii) of the proviso to sub-section (3) of section 206AB of the Income-tax Act, 1961.
  • This notification is effective from the date of its publication in the Official Gazette, which is May 27, 2024.

Key Changes

  • The Reserve Bank of India is now explicitly identified as a person exempt from the higher tax deduction at source (TDS) or tax collection at source (TCS) rates under Section 206AB of the Income-tax Act, 1961.
  • This exemption is granted under clause (ii) of the proviso to sub-section (3) of section 206AB.

Impact Analysis

Impact on Reserve Bank of India (RBI)

  • Action Item: RBI should ensure compliance with all other applicable provisions of the Income-tax Act, 1961.

Impact on Entities Dealing with RBI

  • Action Item: Update internal systems and processes to reflect the RBI's exemption from Section 206AB.

Impact on Central Board of Direct Taxes (CBDT)

  • Action Item: Ensure that the notification is effectively communicated to all relevant stakeholders and tax authorities.

Key Entities Referenced

Reserve Bank of India (RBI): The central bank of India, now notified as a specified person exempt from higher TDS/TCS rates under Section 206AB of the Income-tax Act, 1961. Central Board of Direct Taxes (CBDT): The authority under the Department of Revenue, Ministry of Finance, responsible for issuing the notification and administering direct taxes. Income-tax Act, 1961: The primary legislation governing income tax in India. Section 206AB pertains to higher TDS/TCS rates for non-filers of income tax returns.
Official Source Record View Original Source →
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-27052024-254350 CG-DxLx-xEG-I2D7H0x5x2x0 24-254350 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (ii) PART II—Section 3—Sub-section (ii) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 2008] नई दिल्ली, सोमिार, मई 27, 2024/ज्य ष्े ठ 6, 1946 No. 2008] NEW DELHI, MONDAY, MAY 27, 2024/JYAISHTHA 6, 1946 जित्त मंत्रालय (रािस्ट्ि जिभाग) (केंद्रीय प्रत्यक्ष कर बोड)ड अजधसचू ना नई दिल्ली, 27 मई, 2024 (आय-कर) का.आ . 2107(अ).—केंद्रीय सरकार, आय-कर अजधजनयम, 1961 (1961 का 43) की धारा 206कख के उपखंड (3) के परंतकु के खंड (ii) द्वारा प्रित्त िजियों का प्रयोग करते हुए भारतीय ररििड बैंक को उि खंड म ें जनर्दिष्ट व्यजि के रूप में अजधसूजचत करती ह।ै 2. यह अजधसूचना रािपत्र में उसके प्रकािन की तारीख से प्रिृत्त होगी । [स.ं 45/2024/एफ. सं. 370142/8/2024-टीपीएल] खुिबू लाठर, अिर सजचि 3215 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 27th May, 2024 (INCOME-TAX) S.O. 2107(E).—In exercise of the powers conferred by clause (ii) of the proviso to sub-section (3) of section 206AB of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the Reserve Bank of India to be a person referred to in the said clause. 2. This notification shall come into force from the date of its publication in the Official Gazette. [No. 45/2024/F. No 370142/8/2024-TPL] KHUSHBOO LATHER,Under Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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