The Central Government last day notified TDS exemption for the interest payments made to Housing and Urban Development Corporation Ltd. ( HUDCO ).
A notification issued by the Ministry of Finance said that “In exercise of the powers conferred by sub-clause (f) of clause (iii) of sub-section (3) of Section 194A of the Income Tax Act, the Central Government hereby notifies the Housing and Urban Development Corporation Ltd. (HUDCO), New Delhi for the purpose of said clause. 2. This notification shall come into force from the date of its publication in the Official Gazette.”
Section 194A(3)(iii)(f) of the Income Tax Act, 1961 directs that no tax is required to be deducted from interest payment to any corporation established by a Central State or Provincial Act. Thus, it is not coming under the purview of TDS provision.
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