Section 206A: Interest Payments Without Tax Deduction Require Statement Submission by Banks and Societies from September 2019

Section 206A of the Income-tax Act, as amended by the Finance (No. 2) Act, 2019, effective September 1, 2019, mandates that banking companies, co-operative societies, or public companies paying interest income to residents without tax deduction must submit a statement to the prescribed income-tax authority. This applies to payments not exceeding forty thousand rupees for banking or co-operative societies and five thousand rupees otherwise. The statement must be in a prescribed form and manner. Additionally, the Board may require other entities to submit similar statements, and corrections can be made to these statements if necessary.

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