194K Income in respect of units Any person responsible for paying to a resident any income in respect of—
(a) units of a Mutual Fund specified under clause (23D) of section 10; or
(b) units from the Administrator of the specified undertaking; or
(c) units from the specified company, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof by any mode, whichever is earlier, deduct income- tax thereon at the rate of ten per cent:
Provided that the provisions of this section shall not apply—
(i) where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the person responsible for making the payment to the account of, or to, the payee does not exceed [ten] thousand rupees; or
(ii) if the income is of the nature of capital gains.
Explanation 1.—For the purposes of this section,—
(a) "Administrator" means the Administrator as referred to in clause (a) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);
(b) "specified company" means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);
(c) "specified undertaking" shall have the meaning assigned to it in clause (i) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002).
Explanation 2.—For the removal of doubts, it is hereby clarified that where any income referred to in this section is credited to any account, whether called "suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be the credit of such income to the account of the payee and the provisions of this section shall apply accordingly. 3500 3501 3502 3503 3504 3505 3506 3507 3508 3509 3510 3511 3512 3513 3514 3515 3516 3517 3518 3571 3572 3576 3577 3578 3579 3580 3581 3582 3583 3584 3585 3586 3500 Ins. by Act 23 of 2004, s. 38 (w.e.f. 1-10-2004). 3501 Subs. by Act 28 of 2016, s. 81, for “two hundred thousand rupees” (w.e.f. 1-6-2016). 3502 Ins. by Act 7 of 2017, s. 67 (w.e.f. 1-4-2017). 3503 Ins. by Act 8 of 2011, s. 28 (w.e.f. 1-6-2011). 3504 Ins. by Act 25 of 2014, s. 58 (w.e.f. 1-10-2014). 3505 Subs. by Act 28 of 2016, s. 82, for “in clause (23FC)” (w.e.f. 1-6-2016). 3506 Ins. by Act 20 of 2015, s. 46 (w.e.f. 1-6-2015). 3507 Subs. by s. 46, ibid., for “being a non-resident, not being a company” (w.e.f. 1-6-2015). 3508 Ins. by Act 20 of 2015, s. 47 (w.e.f. 1-6-2015). 3509 Subs. by Act 28 of 2016, s. 83, for “deduct income-tax thereon at the rate of ten per cent.” (w.e.f. 1-6-2016). 3510 Ins. by s. 84, ibid (w.e.f. 1-6-2016). 3511 Ins. by Act 23 of 2012, s. 76 (w.e.f. 1-7-2012). 3512 Ins. by Act 25 of 2014, s. 59 (w.e.f. 1-10-2014). 3513 Subs. by s. 59, ibid., for clause (i) (w.e.f. 1-10-2014). 3514 Subs. by Act 7 of 2017, s. 68, for “1st day of July, 2017” (w.e.f. 1-4-2018). 3515 Subs. by s. 68, ibid., for “and” (w.e.f. 1-4-2018). 3516 Ins. by s. 68, ibid (w.e.f. 1-4-2016). 3517 Ins. by Act 17 of 2013, s. 47 (w.e.f. 1-6-2013). 3518 Subs. by Act 7 of 2017, s. 69, for “1st day of July, 2017” (w.e.f. 1-4-2018). 3571 Ins. by Act 7 of 2017, s. 70 (w.e.f. 1-6-2017). 3572 Ins. by Act 28 of 2016, s. 86 (w.e.f. 1-6-2016). 3576 Subs. by Act 20 of 2015, s. 50, for “section 193 or section 194 or section 194A” (w.e.f. 1-6-2015). 3577 Subs. by Act 23 of 2012, s. 78, for “sixty-five years” (w.e.f. 1-7-2012). 3578 The words, figures and letter “and is entitled to a deduction from the amount of income-tax on his total income referred to in section 88B” omitted by Act 22 of 2007, s. 58 (w.e.f. 1-4-2006). 3579 Ins. by Act 28 of 2005, s. 27 and the Second Schedule (w.e.f. 10-2-2006). 3580 Ins. by Act 33 of 2009, s. 63 (w.e.f. 1-4-2009). 3581 Ins. by Act 23 of 2012, s. 78 (w.e.f. 1-7-2012). 3582 Ins. by Act 18 of 1992, s. 77 (w.e.f. 1-6-1992). 3583 Ins. by Act 32 of 2003, s. 85 (w.e.f. 1-6-2003). 3584 Subs. by Act 4 of 1988, s. 2, for “Commissioner” (w.e.f. 1-4-1988). 3585 Subs. by Act 25 of 2014, s. 4, for “Chief Commissioner” (w.e.f. 1-6-2013). 3586 Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 1-6-2013).