Notification No. 174E

The Central Government, having regard to the extent of inconvenience likely to be caused to the commission agents and dealers in foodgrain trade, being residents, and being satisfied that it will not be prejudicial to th

What this is

Notification No. 174E was published on 3 March 1992. Its subject is The Central Government, having regard to the extent of inconvenience likely to be caused to the commission agents and dealers in foodgrain trade, being residents, and being satisfied that it will not be prejudicial to th.

This grants an exemption or a relief under a provision that allows one. Read the conditions attached: an exemption notification is construed strictly, and a condition missed is the exemption lost.

What it does

The Central Government, in exercise of the powers conferred by clause (a) of sub-section (2) of section 194H of the Income-tax Act, 1961, exempts persons responsible for paying any income by way of commission or brokerage to commission agents or dealers in foodgrains trade, being residents, from deduction of tax at source on such payments. The exemption is subject to two conditions: the commission agents or dealers must furnish their permanent account number to those persons, and those persons must furnish to the Commissioner of Income-tax concerned, within two months of the end of the financial year, a list of the commission agents or dealers in whose cases tax has not been deducted at source, with their addresses and the amount of commission or brokerage paid in each case during that financial year. The notification remains in force up to the 30th day of September, 1992.

Why it was issued

The Central Government had regard to the extent of inconvenience likely to be caused to the commission agents and dealers in foodgrain trade, being residents, and was satisfied that the exemption will not be prejudicial to the interests of the Revenue.

Who it reaches

persons paying commission or brokerage to commission agents or dealers in foodgrains trade
commission agents in the foodgrains trade, being residents
dealers in the foodgrains trade, being residents
the Commissioner of Income-tax to whom the annual list must be furnished

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.194H	s.393, s.402

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

The Central Government, having regard to the extent of inconvenience likely to be caused to the commission agents and dealers in foodgrain trade, being residents, and being satisfied that it will not be prejudicial to the interests of the Revenue, in exercise of the powers conferred by clause (a) of sub-section (2) of section 194H of the Income-tax Act, 1961 (43 of 1961), hereby exempts the persons responsible for paying any income by way of commission or brokerage (hereinafter referred to as "the said persons") to commission agents or dealers in foodgrains trade, subject to the following conditions, namely :--

(i) the commission agents or dealers furnish their Permanent Account Number (PAN) to the said persons ;

(ii) the said persons furnish a list of commission agents or dealers, in whose cases tax has not been deducted at source, along with their addresses and the amount of commission or brokerage paid in each case during the financial year to the Commissioner of Income-tax concerned within two months of the end of that financial year.

2. This notification will remain in force up to the 30th day of September, 1992.

[Notification No. 9007/F. No. 275/13/92-IT(B)

From when

3 March 1992, and in force up to 30 September 1992.

What to watch

The notification is expressed to remain in force only up to 30th September, 1992.
The exemption fails if the agent or dealer does not furnish his permanent account number to the payer.
The payer must file the list of non-deducted cases, with addresses and amounts, with the Commissioner of Income-tax concerned within two months of the end of the financial year.
The exemption reaches only agents and dealers who are residents and who are in the foodgrains trade.

Where you meet it

In a foodgrains trader's tax deduction at source position on commission under section 194H, and in the agent's or dealer's own return where the commission is received without deduction.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Notification No. 31 — Income-tax (Eighth Amendment) Rules, 2009 - Amendments in Forms 24Q, 26Q, 27Q, 27EQ; Substitution of Rules 30, 31, 31A, 25 March 2009
Circular No. 6/2003 — Section 194H of the Income-tax Act, 1961 - Commission or brokerage - Clarifications regarding Turnover Commission payabl 3 September 2003
Notification No. 344E — A notification under section 194H of the Income-tax Act, 1961 18 May 1992
Notification No. 175E — The Central Government, having regard to the extent of inconvenience likely to be caused to the International Air Transp 3 March 1992
Notification No. 114 — The Central Government having regard to the extent of inconvenience likely to be caused to the persons specified in the 6 February 1992
Circular No. 619 — Section 194H l Commission, Brokerage, ETC 1 4 December 1991

← Notification No. 175E · Notification No. 956 →

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.