TDS Exemption on Aircraft Leasing… — Notification No. 52/2023 F.No. 275/17/2023 IT(B)

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TDS Exemption on Aircraft Leasing… — Notification No. 52/2023 F.No. 275/17/2023 IT(B) | CBDT notification · Complied AI

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What changed

The Central Board of Direct Taxes specifies that no income tax deduction applies under section 194 of the Income-tax Act to dividend income paid by an aircraft leasing unit in an International Financial Services Centre to another aircraft leasing unit in an International Financial Services Centre. The payee unit furnishes a statement-cum-declaration in Form No. 1 to the payer unit. The payer unit stops tax deduction after receiving Form No. 1 and includes the payment particulars in the tax deduction statement. The Director General of Income-tax (Systems) determines procedures for secure data capture and transmission. This notification comes into force on 1st September, 2023.

What you must do

The payee shall furnish a statement-cum-declaration in Form No. 1 to the payer giving details of the relevant previous year.
The payer shall not deduct tax on payment made or credited to the recipient after the date of receipt of Form No. 1.
The payer shall furnish particulars of all payments made without tax deduction in the statement of deduction of tax.

Key dates

Effective from: 01 Sept 2023
Date of coming into force: 01 Sept 2023

Law this touches

Filings this may affect

Monthly TDS payment to the GovernmentTax deducted at source in a month has to reach the Government by the 7th of the next month. March deductions get until 30 April.Next due7 Nov 2026Deductions for April to February

Matched on the filing’s own terms in this document. Check that it governs your filing before you act.

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Who is affected

Any unit of an International Financial Services Centre, primarily engaged in the business of leasing of an aircraft that pays a dividend.
A company, being a Unit of an International Financial Services Centre primarily engaged in the business of leasing of an aircraft that receives a dividend.

Ask about this notification

Written automatically from the official document. It is not a professional review, so check material decisions against the official record.

Document text

Prepared for reading; wording retained from the source.

Official source

MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 20th July, 2023 INCOME TAX

S.O. 3254(E).— In exercise of the powers conferred by sub-section (1F) of section 197A read with clause (34B) of section 10 of the Income-tax Act,1961 (43 of 1961) (hereinafter the Income-tax Act), the Central Government hereby specifies that no deduction of income tax shall be made under section 194 of the Income-tax Act from any income in the nature of dividend paid by any unit of an International Financial Services Centre, primarily engaged in the business of leasing of an aircraft (hereinafter referred as payer) to a company, being a Unit of an International Financial Services Centre primarily engaged in the business of leasing of an aircraft (hereinafter referred as payee) subject to the following-

(a) The payee shall, -
- (i) furnish a statement-cum-declaration in Form No. 1 to the payer giving details of previous year relevant to the assessment year in which the dividend income eligible for exemption under clause (34B) of section 10 of Income-tax Act is payable.
- (ii) such statement-cum-declaration shall be furnished and verified in the manner prescribed in Form No. 1 for the previous year relevant to the assessment year in which the dividend income eligible for exemption under clause (34B) of section 10 of Income-tax Act is payable.
(b) The payer shall, -
- (i) not deduct tax on payment made or credited to the recipient of such dividend (payee) after the date of receipt of copy of statement-cum-declaration in Form No. 1 from payee; and
- (ii) furnish the particulars of all the payments made to the recipient of such dividend on which tax has not been deducted in view of this Notification in the statement of deduction of tax referred to in sub-section (3) of section 200 of the Income-tax Act, read with the rule 31A of the Income-tax Rules, 1962.

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.

Explanation.- For the purpose of this notification,-

(a) “aircraft” shall have the same meaning assigned to it in the Explanation to clause (4F) of section 10 of the Income-tax Act;
(b) “International Financial Services Centre” shall have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005); and
(c) “Unit” shall have the same meaning as assigned to it in clause (zc) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005).

This notification shall come into force from 1st September, 2023.

Form No. 1 To be furnished by a Unit engaged in the business of leasing of aircraft (deductee/payee) located in International Financial Services Centre to a Unit of International Financial Services Centre (deductor/payer)

Name of the assessee:
PAN:
Name and address of the unit located in International Financial Services Centre:

Statement-cum-Declaration I...................................son/daughterof............................in capacity..............................., do hereby declare that the above-mentioned Unit is primarily engaged in the business of leasing of aircraft and its dividend income is eligible for exemption under clause (34B) of section 10 of the Income-tax Act, 1961. I further declare that the abovementioned Unit continues to be a unit working in International Financial Services Centre and continues to be primarily engaged in the business of leasing of aircraft during the year…….. (relevant to Assessment Year ….…….) in which this statement-cum-declaration is being submitted.

Verification

I………………….……son/daughter of …………………………in capacity…………...do hereby certify that all the particulars furnished above are correct and complete.

Signature of the declarant (to be signed by a person competent to verify the return of income as provided in section 140 of the Income-tax Act)

[Notification No. 52/2023/F.No. 275/17/2023-IT(B)] SHYAM SHARMA, Under Secy.

TDS Exemption on Aircraft Leasing Unit Dividends in IFSC

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TDS Exemption on Aircraft Leasing Unit Dividends in IFSC

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