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Date: 16-Oct-2024 Category: Extra Ordinary State: Union Government Country: India

notifying RBI as exempt from requirement of tax collection at source under section 206C(1F) of Incometax Act, 1961

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

Gazette Notification Description

  • This notification, issued by the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, India, on October 16, 2024, specifies that no tax collection will be made under sub-section (1F) of section 206C of the Income-tax Act, 1961, on any payment received from the Reserve Bank of India (RBI).

Key Changes

  • The key change is the exemption from tax collection under section 206C(1F) of the Income Tax Act, 1961 for payments received from the Reserve Bank of India. This effectively removes a tax liability on such payments.
  • The notification comes into effect on the date of its publication in the Official Gazette (October 16, 2024).

Impact Analysis

Impact on the Reserve Bank of India (RBI)

  • The RBI will benefit from this notification as it will no longer be subject to tax collection under section 206C(1F) on payments it makes. This simplifies its tax compliance procedures and reduces administrative burden.

Impact on Recipients of RBI Payments

  • Entities receiving payments from the RBI will experience a reduction in their tax withholding obligations. This will improve their cash flow and simplify their tax reporting.

Impact on the Government

  • The government will experience a reduction in tax revenue collected under this specific section. However, the overall impact on government revenue needs further analysis, considering potential offsetting effects.

Suggested Action Items

  • Businesses receiving payments from RBI should review their tax procedures to align with the new notification.

Key Entities Referenced

Ministry of Finance (Department of Revenue): The issuing authority of the notification. Central Board of Direct Taxes (CBDT): The body responsible for administering direct taxes in India. Reserve Bank of India (RBI): The central bank of India, whose payments are exempted from the tax collection specified in the notification. Income-tax Act, 1961 (43 of 1961): The relevant legislation under which the notification is issued, specifically section 206C(1F).
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-16102024-257959 CG-DxLx-xEG-I1D6H1x0x2x0 24-257959 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.ं 4181] नई दिल्ली, बुधिार, अक्त बू र 16, 2024/आज‍ि न 24, 1946 No. 4181] NEW DELHI, WEDNESDAY, OCTOBER 16, 2024/ASVINA 24, 1946 जित्त मत्रं ालय (रािस्ट्ि जिभाग) (केन्द्रीय प्रत्यक्ष कर बोडड) अजधसचू ना नई दिल् ली, 16 अक् तूबर, 2024 (आय-कर) का.आ. 4545(अ).— केन्द्रीय सरकार, आय-कर अधनियम, 1961 (1961 का 43) की धारा 206ग की उपधारा (12) द्वारा प्रदत्त शनियों का प्रयोग करत े हुए निनिर्दिष्ट करती ह ै कक भारतीय ररजिि बैंक से प्राप्त हुए ककसी संदाय पर उि अनधनियम की धारा 206ग की उपधारा (1च) के अधीि कोई कर संग्रहण िहीं ककया जाएगा । 2. यह अनधसूचिा राजपत्र म ें उसके प्रकाशि की तारीख को प्रिृत्त होगी । [स.ं 115/2024/फा. स.ं 370142/21/2024-टीपीएल] खुशबू लाठर, अिर सनचि 6740 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 16th October, 2024 (INCOME-TAX) S.O. 4545(E).— In exercise of the powers conferred by sub-section (12) of section 206C of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies that no collection of tax shall be made under sub-section (1F) of section 206C of the said Act on any payment received from the Reserve Bank of India. 2. This notification shall come into force on the date of its publication in the Official Gazette. [No. 115/2024/F. No. 370142/21/2024-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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