No TDS payable by Air India for Transfer of Capital Asset under plan approved by Central Govt: CBDT [Read Notification]

TDS - Air India - transfer of capital asset - Central Government - CBDT - Taxscan

The CBDT notified that Air India is not liable to deduct tax at source (TDS) for transfer of capital assets under a plan approved by the Central Government.

“In exercise of the powers conferred by clause (viiaf) of the section 47 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the transfer of capital asset under plan approved by Central Government from Air India Limited (PAN: AACCN6194P), being transferor public sector company, to Air India Assets Holding Limited (PAN: AAQCA4703M), being transferee public sector company, for the purposes of the said clause,” the CBDT notified. This notification shall come into force with effect from 1st day of April, 2022 and shall, accordingly, apply in relation to the assessment year 2022-2023 and subsequent assessment years.

“In exercise of the powers conferred by sub-section (1F) of section 197A of the Income-tax Act, 1961 (43 of 1961) , the Central Government hereby specifies that no deduction of tax shall be made under section 194-IA of the said Act on any payment made to the Air India Limited (PAN: AACCN6194P) for transfer of immovable property to Air India Assets Holding Limited (PAN: AAQCA4703M) under a plan approved by the Central Government,” the notification said. The notification shall be deemed to have come into force with effect from the 1st day of April, 2021.

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