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40. Amendment of section 194C. |
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In section 194C of the Income-tax Act, in sub-section (1), after clause (j), the following clause shall be inserted with effect from the 1st day of June, 2008, namely:
(ja) any association of persons or body of individuals, whether incorporated or not; or".
Clause 40 seeks to amend section 194C of the Income-tax Act, which relates to payments to contractors and sub-contractors.
Sub-section (1) of the said section specifies the entities which are liable to deduct tax at source on payments to a resident contractor. These entities include some of associations of persons or bodies of individuals but do not include all associations of persons or bodies of individuals in general.
The proposed amendment seeks to provide that every association of persons or body of individuals, whether incorporated or not, shall be liable to deduct income-tax at source under the said sub-section.
This amendment will take effect from 1st June, 2008.
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