Clarification regarding exemptions u/s 194N
Clarification in relation to notification issued under clause (v) of proviso to section 194N of the Income-tax Act, 1961 (the Act) prior to its amendment by Finance Act, 2020 (FA, 2020)
It is hereby clarified that the below mentioned three
notifications (which were issued before the said section were amended) shall be deemed to be issued under fourth proviso to section 194N as amended by the FA, 2020.
(a) Notification 68 of 2019 dated 18.09.2019
Cash Replenishment Agencies (CRAs) and franchise agents of White Label Automated Teller Machine Operators (WLATMOs) for the purpose of replenishing cash in ATMs operated by these entities subject to conditions mentioned in the said notification.
(b) Notification 70 of 2019 dated 20.09.2019
Commission agent or trader operating under Agriculture Produce Market Committee (APMC) and registered under any law relating to Agriculture Produce Market of the concerned State have been exempted subject conditions specified in said notfn
(c) Notification 80 of 2019 dated 15.10.2019:
The authorized dealer and its franchise agent and sub-agent and Full Fledged Money Changer (FFMC) licensed by the Reserve Bank of India and its franchise agent for the purposes of-
1. Purchase of foreign currency from foreign tourists or non-residents visiting India or from resident Indians on their return to India, in cash as per the directions or guidelines issued by Reserve bank of India; or
2. Disbursement of inward remittances to the recipient beneficiaries in India in cash under Money Transfer Service Scheme (MFSS) of the Reserve Bank of India;
and subject to the conditions specified in the said notification.