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Informative

Finance Ministry Exempts NCGTC from TDS on Payments Received u/s 10(46B)(i) of Income Tax

Update / Judgement Date

03 Jan 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Corporate ComplianceIncome Tax

The Finance Ministry has granted an exemption from TDS (Tax Deducted at Source) to the National Credit Guarantee Trustee Company (NCGTC) on payments received under Section 80-IB of the Income Tax Act. This exemption aims to help MSMEs by reducing the tax burden on NCGTC, which provides guarantees for loans extended to small and medium businesses. It supports financial inclusion and smoothens the functioning of MSME-related financial activities.