Notification No. 98/2021 [F. No. 370142/11/2021-TPL] / SO 3595(E)

Last updated: 04 September 2021

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This notification from the Ministry of Finance defines what constitutes a 'specified bank' for the purposes of Section 194P of the Income-tax Act, 1961. A specified bank is defined as a banking company that is also a scheduled bank and has been appointed as an agent of the Reserve Bank of India. The notification clarifies the meanings of 'banking company' and 'scheduled bank' by referencing the Reserve Bank of India Act, 1934. It comes into effect from the date of its publication in the Official Gazette.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
New Delhi

Notification No. 98/2021 - Income tax

Dated: 2nd September, 2021

S.O. 3595(E). – In exercise of the powers conferred by clause (a) of Explanation to section 194P of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies specified Bank to mean a banking company which is a scheduled bank and has been appointed as agents of Reserve Bank of India under section 45 of the Reserve Bank of India Act, 1934 (2 of 1934).

Explanation: For the purpose of this notification,-

1. “banking company” shall have the meaning assigned to it in clause (a) of section 45A of the Reserve Bank of India Act, 1934 (2 of 1934);

2 “scheduled bank” shall have the meaning assigned to it in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934).

2. This notification shall come into force from the date of publication in the Official Gazette.

[Notification No. 98/2021/F. No. 370142/11/2021-TPL]
ANKIT JAIN, Under Secy. (Tax Policy and Legislation Division)

FAQ :

The purpose of this notification is to define what constitutes a 'specified bank' under clause (a) of Explanation to section 194P of the Income-tax Act, 1961.

A bank must be a banking company, be a scheduled bank, and have been appointed as an agent of the Reserve Bank of India under section 45 of the Reserve Bank of India Act, 1934.

The definitions are assigned in clause (a) of section 45A and clause (e) of section 2, respectively, of the Reserve Bank of India Act, 1934.

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

Notification No : 98/2021 - Income tax
Source : https://www.incometaxindia.gov.in/communications/notification/notification_98_2021.pdf

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