{"act":{"id":"finance-act-2020","short_title":"The Finance Act, 2020","long_title":"An Act to give effect to the financial proposals of the Central Government for the financial year 2020-2021.","act_number":null,"act_year":2020,"enact_date":null,"enforcement_date":null,"ministry":"Ministry of Finance","department":"Department of Revenue","jurisdiction":"CENTRAL","unit":"section","section_count":157,"in_force":true,"spent":false,"spent_note":null,"duplicate_of":null,"text_source":"published","scan_url":null,"url":"https://indiacode.ecourtsindia.com/finance-act-2020/"},"unit":"section","section":{"number":"80","heading":"Insertion of new section 194K","text":"Insertion of new section 194K. 80. After section 194J of the Income-tax Act, the following section shall be inserted, namely:— '194K. Income in respect of units.—Any person responsible for paying to a resident any income in respect of— (a) | units of a Mutual Fund specified under clause (23D) of section 10; or (b) | units from the Administrator of the specified undertaking; or (c) | units from the specified company, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof by any mode, whichever is earlier, deduct income-tax thereon at the rate of ten per cent: Provided that the provisions of this section shall not apply— (i) | where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the person responsible for making the payment to the account of, or to, the payee does not exceed five thousand rupees; or (ii) | if the income is of the nature of capital gains. Explanation 1.—For the purposes of this section,— (a) | \"Administrator\" means the Administrator as referred to in clause (a) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002); (b) | \"specified company\" means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002); (c) | \"specified undertaking\" shall have the meaning assigned to it in clause (i) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002). Explanation 2.—For the removal of doubts, it is hereby clarified that where any income referred to in this section is credited to any account, whether called \"suspense account\" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be the credit of such income to the account of the payee and the provisions of this section shall apply accordingly.'.","html":"<p><b>Insertion of new section 194K.</b></p><p><b>80.</b> After section 194J of the Income-tax Act, the following section shall be inserted, namely:—</p><p>'194K. <i>Income in respect of units</i>.—Any person responsible for paying to a resident any income in respect of—</p><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>a</i>)</td><td></td><td>units of a Mutual Fund specified under clause (<i>23D</i>) of section 10; or</td></tr><tr><td>(<i>b</i>)</td><td></td><td>units from the Administrator of the specified undertaking; or</td></tr><tr><td>(<i>c</i>)</td><td></td><td>units from the specified company,</td></tr></table></div><p>shall, at the time of credit of such income to the account of the payee or at the time of payment thereof by any mode, whichever is earlier, deduct income-tax thereon at the rate of ten per cent:</p><p><b>Provided</b> that the provisions of this section shall not apply—</p><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>i</i>)</td><td></td><td>where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the person responsible for making the payment to the account of, or to, the payee does not exceed five thousand rupees; or</td></tr><tr><td>(<i>ii</i>)</td><td></td><td>if the income is of the nature of capital gains.</td></tr></table></div><p><i>Explanation 1</i>.—For the purposes of this section,—</p><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>a</i>)</td><td></td><td>\"Administrator\" means the Administrator as referred to in clause (<i>a</i>) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);</td></tr><tr><td>(<i>b</i>)</td><td></td><td>\"specified company\" means a company as referred to in clause (<i>h</i>) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);</td></tr><tr><td>(<i>c</i>)</td><td></td><td>\"specified undertaking\" shall have the meaning assigned to it in clause (<i>i</i>) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002).</td></tr></table></div><p><i>Explanation 2</i>.—For the removal of doubts, it is hereby clarified that where any income referred to in this section is credited to any account, whether called \"suspense account\" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be the credit of such income to the account of the payee and the provisions of this section shall apply accordingly.'.</p>","words":366,"text_source":"published"},"classification":[],"instruments":[],"judgments":[],"corresponds_to":[],"url":"https://indiacode.ecourtsindia.com/finance-act-2020/section/80/","note":null,"source_note":"Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument.","judgments_note":"Judgment holdings are the ratio decidendi as extracted from the order by eCourts India, reproduced unaltered. Reported judgments only.","licence":"Published with commentary and other original matter under s.52(1)(q)(ii), Copyright Act 1957."}