Notification No. 110/2021 [F. No. 275/27/2021-IT(B)] / SO 3815(E)

Last updated: 20 September 2021

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This notification from the Central Board of Direct Taxes states that scheduled banks will not deduct tax on interest payments made to members of Scheduled Tribes. This exemption applies under specific conditions, including verification of the recipient's tribal status and residency, and if the total interest payment does not exceed twenty lakh rupees in a financial year. The bank must also report these payments.

MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi Notification No. 110/2021-Income Tax Dated: 17th September, 2021 S.O. 3815(E). -In exercise of the powers conferred by sub-section (1F) of section 197A of the Income-tax Act, 1961 (43 of 19

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FAQ :

Members of Scheduled Tribes residing in a specified area, who receive interest payments from a scheduled bank located in a specified area, are eligible.

The notification covers interest payments, other than interest on securities, made by a scheduled bank to a member of a Scheduled Tribe.

Yes, the payment made or the aggregate of payments made during the previous year must not exceed twenty lakh rupees.

The bank must verify that the recipient is a member of a Scheduled Tribe residing in a specified area, obtain documentary evidence, and report the payment in tax deduction statements.

The notification comes into force from the date of its publication in the Official Gazette.

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Notification No : 110/2021-Income Tax
Published in Income Tax
Source : https://incometaxindia.gov.in/communications/notification/notification-no-110-2021.pdf.pdf

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