Ministry of Finance has issued a notification under sub-section (1F) of Section 197A of the Income-tax Act, 1961, exempting income-tax deduction on payments made to the National Credit Guarantee Trustee Company Limited (NCGTCL). NCGTCL, a company established and wholly funded by the Central Government, manages credit guarantee funds also fully financed by the Central Government, as specified in Section 10(46B) of the Act.
This exemption ensures that no tax will be deducted at source under Chapter XVII of the Income-tax Act on amounts received by NCGTCL. The notification, aimed at streamlining tax compliance and supporting NCGTCL’s operations, becomes effective from its publication date in the Official Gazette.
MINISTRY OF FINANCE
(Department of Revenue)
Notification 1/2025 Income Tax | Dated: 2nd January, 2025
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.
2. This notification shall come into force from the date of its publication in the Official Gazette.
[F. No. 1/2025/F.No. 275/25/2023-IT(B)]
RUBAL SINGH, Dy. Secy. (IT-Budget)
