Case law › Notifications › 2019 › Notification No. 74/2019 [F.No.370142/18/2019-TPL] / GSR 694(E)

Notification 27 September 2019

Notification No. 74/2019 [F.No.370142/18/2019-TPL] / GSR 694(E)

Ministry of Finance

What this is

Notification No. 74/2019 [F.No.370142/18/2019-TPL] / GSR 694(E) was published on 27 September 2019. Its subject is Ministry of Finance.

This amends the Income-tax Rules. What it changes is the Rules, not the Act — and a rule can never take away what the section gives.

What it does

The Central Board of Direct Taxes makes the Income-tax (10th Amendment) Rules, 2019 under section 199 read with section 295 of the Income-tax Act, 1961, inserting a new sub-rule (3A) after sub-rule (3) of rule 37BA of the Income-tax Rules, 1962. The new sub-rule provides that, notwithstanding sub-rules (1), (2) and (3), for the purposes of section 194N credit for tax deducted at source shall be given to the person from whose account the tax is deducted and paid to the Central Government account, for the assessment year relevant to the previous year in which the deduction is made.

Why it was issued

The explanatory memorandum certifies that no person is adversely affected by giving retrospective effect to the rules.

Who it reaches

Persons withdrawing cash from a bank, co-operative bank or post office account above the section 194N threshold
Banks, co-operative banks and post offices deducting under section 194N
Account holders whose accounts are operated by another person
Assessing Officers allowing credit for tax deducted

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.3	s.3
s.194N	s.393, s.400
s.199	s.390
s.295	s.533

The instrument, as the Board published it

The department publishes this one only as a PDF, so the words below were read out of that PDF by machine. That reading can carry its own mistakes — a misread number, a broken line. Check the signed document before you rely on a figure in it.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 27th September, 2019
INCOME-TAX
G.S.R. 694(E).In exercise of the powers conferred by section 199 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes, hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—

1. Short title and commencement.-(1) These rules may be called the Income-tax (10th Amendment) Rules, 2019.
(2) They shall be deemed to have come into force with effect from the 1st day of September, 2019.

2. In the Income-tax Rules, 1962, in rule 37BA, after sub-rule (3), the following sub-rule shall be inserted, namely:-
"(3A) Notwithstanding anything contained in sub-rule (1), sub-rule (2) or sub-rule (3), for the purposes of section 194N, credit for tax deducted at source shall be given to the person from whose account tax is deducted and paid to the Central Government account for the assessment year relevant to the previous year in which such tax deduction is made"
[Notification No. 74/F. No. 370142/18/2019-TPL]

SAURABH GUPTA, Under Secy. (Tax Policy and Legislation Division)

Explanatory Memorandum : It is certified that no person is being adversely affected by giving retrospective effect to the present rules.

Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (ii) vide notification number S.O. 969(E), dated the 26th March, 1962 and last amended vide notification number G.S.R. 679(E), dated 20.09.2019.

Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

What it changes

The rule numbers are the 1962 Rules’ own, as the notification names them. The right-hand column is the department’s own mapping into the Income-tax Rules, 2026, which renumbered nearly everything.

Rule of the 1962 Rules	Now, in the 2026 Rules
Rule 37BA	rule 203

From when

1 September 2019, retrospectively.

What to watch

The rules are deemed to have come into force with effect from 1 September 2019, so they are retrospective.
Sub-rule (3A) overrides sub-rules (1), (2) and (3) of rule 37BA, so the ordinary rules on credit where income is assessable in another's hands do not apply to section 194N.
Credit follows the account from which the tax is deducted, and no other person can claim it.
The year of credit is the assessment year relevant to the previous year of deduction, since section 194N deducts on a withdrawal and not on income.
The note records the last previous amendment as G.S.R. 679(E) dated 20 September 2019.

Where you meet it

In the tax credit statement and the return of a person who has withdrawn cash above the section 194N threshold, and in any dispute about who may claim that credit.

What it names

Rules it names. Rule 37BA of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.

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. 94/2026 [F. No. 370142/24/2026-TPL] / G.S.R. 646(E) : Income-tax (Second Amendment) Rules, 2026 : Amendment of rule 157 of the Income tax Rules, 2026 to align the definition of the specified fund with rule 114AAB of the Income tax Rules, 1962 — Ministry of Finance 21 July 2026
Notification No. 64 — [भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 7 16 April 2026
Notification No. 63/2026 [F. No. 370142/13/2026-TPL]/ GSR 268(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(i)] 10 April 2026
Notification No. 62/2026 [F. No. 370142/10/2026-TPL]/ GSR 267(E) — Ministry of Finance 10 April 2026
Notification No. 61/2026 [F. No. 370142/9/2026-TPL] / GSR 266(E) — [भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3 10 April 2026
Notification No. 60/2026 [F. No. 370142/8/2026-TPL]/ GSR 265(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(i)] 10 April 2026

← Notification No. 75/2019 [F.No. 225/75/2019-ITA.II] · Notification No. 73/2019 [F.No.187/7/2019-ITA-I] / SO 3469(E) →

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.