TDS exemption on dividends: retrospective exclusion for payments to business trusts and notified entities. The amendment to section 194 inserts clauses excluding from TDS dividend payments credited or paid to a business trust by a special purpose vehicle as ... Summary
TDS exemption on dividends: retrospective exclusion for payments to business trusts and notified entities.
The amendment to section 194 inserts clauses excluding from TDS dividend payments credited or paid to a business trust by a special purpose vehicle as described in the Explanation to clause (23FC) of section 10, and to any person notified by the Central Government; these exclusions operate retrospectively from 1 April 2020 and limit withholding obligations under the second proviso to section 194.
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