The Ministry of Finance issued Notification No. S.O. 19(E), dated January 2, 2025, announcing a tax exemption for the National Credit Guarantee Trustee Company Limited ( NCGTC ). Payments made to National Credit Guarantee Trustee Company Limited (NCGTC) will now be exempt from income tax deduction at source (TDS).
This exemption granted under sub-section (1F) of Section 197A of the Income Tax Act, 1961, applies to NCGTC, which is wholly established and financed by the Central Government. The company operates credit guarantee funds that are also fully funded by the Central Government, as referred to in Section 10(46B)(i) of the Income Tax Act.
It becomes effective immediately from the date of publication in the Official Gazette.
About NCGTC
The National Credit Guarantee Trustee Company Ltd (NCGTC) is a private limited company that was formed on March 28, 2014, under the Companies Act of 1956. It was established by the Department of Financial Services, which operates under the Ministry of Finance and is entirely owned by the Government of India. The primary purpose of NCGTC is to serve as a central trustee organization that manages multiple credit guarantee funds for various financial programs.
Simplify Tax Settlements with Vivad se Vishwas Insights – Click here to Register
S.O. 19(E).—In exercise of the powers conferred by sub-section (1F) of section 197A of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the said Act), the Central Government hereby notifies that no deduction of income-tax under Chapter XVII of the said Act shall be made on the payments received by the National Credit Guarantee Trustee Company Limited, being a company established and wholly financed by the Central Government for the purposes of operating credit guarantee funds established and wholly financed by the Central Government as referred to in sub-clause (i) of clause (46B) of section 10 of the said Act.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
