The Ministry of Finance (MoF) on August 01, 2023, issued a notification regarding no deduction of tax shall be made under section 194-I of the Income-tax Act,
Under section 194-I of the Income-tax Act on payment in the nature of lease rent or supplemental lease rent, as the case may be, made by a person (‘lessee’) to a person being a Unit of an International Financial Services Centre (‘lessor’) for a lease of a ship subject to the conditions specified,
The above relaxation shall be available to the lessor only during the said previous years relevant to the ten consecutive assessment years as declared by the lessor in Form No. 1 for which deduction under section 80LA is being opted. The lessee shall be liable to deduct tax on payment of lease rent for any other year.
The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall lay down procedures, formats and standards for ensuring secure capture and transmission of data and uploading of documents and the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies.
This notification shall come into force from September 01, 2023.
[Notification No. S.O. 3451(E)]
