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Taxation Central Ministry of Finance Income Tax Act, 1961

Central Government has specified the conditions for non-deduction of income in the nature of dividends paid by any unit of an International Financial Services Centre (IFSC) engaged in the business of leasing an aircraft

20-Jul-2023 | S.O. 3254(E)

CBDT has issued a circular that no deduction of income tax shall be made from any income in the nature of dividends paid by any unit of an International Financial Services Centre engaged in the business of leasing an aircraft. By virtue of this circular, the given conditions shall be required to be fulfilled by the Payee: 1. Furnishing of a statement-cum-declaration in Form No. 1 to the payer giving details of the previous year relevant to the assessment year in which the dividend income eligible for exemption under Section 10(34B) of the Income-tax Act is payable. 2. Statement-cum-declaration shall be furnished and verified in the manner prescribed in Form No. 1 for the previous year relevant to the assessment year in which the dividend income eligible for exemption under Section 10(34B) of the Income-tax Act is payable. Further, the Payer shall: 1. Not deduct tax on payment made or credited to the recipient of such dividend (payee) after the date of receipt of a copy of statement-cum-declaration in Form No. 1 from the payee. 2. Furnish the particulars of all the payments made to the recipient of such dividend on which tax has not been deducted in view of this Notification.

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