Section 194F of Income Tax Act for AY 2023-24

Section 194F of Income Tax Act 1961 amended by Finance Act and Income-tax Rules 1962. Payments for repurchase of units by Mutual Fund or UTI.

Amended and updated notes on section 194F of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Payments on account of repurchase of units by Mutual Fund or Unit Trust of India.

Chapter XVII (Sections 190 to 234G) of the Income Tax Act 1961 deals with the provisions related to collection and recovery of tax. Section 194F of IT Act 1961 provides for Payments on account of repurchase of units by Mutual Fund or Unit Trust of India.

Recently, we have discussed in detail section 194EE (Payments in respect of deposits under National Savings Scheme) of IT Act 1961. Today, we learn the provisions of section 194F of Income-tax Act 1961. The amended provision of section 194F is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 194F of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-194F: Payments on account of repurchase of units by Mutual Fund or Unit Trust of India

The person responsible for paying to any person any amount referred to in sub-section (2) of section 80CCB shall, at the time of payment thereof, deduct income-tax thereon at the rate of twenty per cent.


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