89[Income in respect of units.90
194K. Where any income is payable to a resident in respect of units of a Mutual
Fund specified under clause (23D) of section 10
or of the Unit Trust of India, the person responsible for making the payment
shall, at the time of credit of such income to the account of payee or at the
time of payment thereof in cash or by issue of a cheque or draft or by any
other mode, whichever is earlier, deduct income-tax thereon at the rate of ten
per cent :
Provided that the provisions of this section shall not
apply where the amount of such income or, as the case may be, the aggregate of
the amounts of such income credited or paid or likely to be credited or paid
during the financial year by the person responsible for making the payment to
the account of, or to, the payee does not exceed 91[two thousand five hundred] rupees :
Provided
further that the amount of
one thousand* rupees shall be computed with
reference to the income credited or paid—
(a) in
respect of a branch office of the Mutual Fund or of the Unit Trust of India, as
the case may be, and
(b) under
a particular scheme under which the units have been issued :
92[Provided also that no deduction shall be made under this
section from any such income credited or paid on or after the 1st day of April,
2003.]
Explanation.—For the purposes of this section,—
(a) “Unit
Trust of India” means the Unit Trust of India established under the Unit Trust
of India Act, 1963 (52 of 1963);
(b) where
any income as aforesaid is credited to any account, whether called “Suspense
account” or by any other name, in the books of account of the person liable to
pay such income, such crediting shall be deemed to be credit of such income to
the account of the payee and the provisions of this section shall apply
accordingly.]