Section 194K of ITA, 1961 : Section 194K: [Omitted]
ITA, 1961
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Explanation using Example
Imagine Mr. Sharma had invested in a mutual fund and received income from the sale of the units of the fund. Before the omission of Section 194K by the Finance Act, 2016, the mutual fund company would have been required to deduct tax at source (TDS) on the income paid to Mr. Sharma if it exceeded a certain threshold. However, since Section 194K has been omitted effective from June 1, 2016, the mutual fund company is no longer required to deduct TDS on such income. Therefore, Mr. Sharma now receives the sale proceeds without tax deduction, and he is responsible for reporting this income and paying any applicable taxes when he files his annual income tax return.