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Case law › Notifications › 2025 › Notification No. 2/2025 [F.No. 275/110/2024-IT(B)] / SO 20(E)
Notification 2 January 2025

Notification No. 2/2025 [F.No. 275/110/2024-IT(B)] / SO 20(E)

2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(ii)]

What this is

Notification No. 2/2025 [F.No. 275/110/2024-IT(B)] / SO 20(E) was published on 2 January 2025. Its subject is 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(ii)].

What it does

In exercise of the powers under sub-section (1F) of section 197A of the Income-tax Act, 1961, the Central Government notifies that no deduction of income-tax under Chapter XVII shall be made on payments received by a credit guarantee fund established and wholly financed by the Central Government and managed by the National Credit Guarantee Trustee Company Limited, as referred to in sub-clause (ii) of clause (46B) of section 10 of that Act. The effect is a blanket no-deduction position for payments to such a fund.

Who it reaches

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 ActNow
s.10s.11, s.19
s.197As.393, s.400, s.402

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.

2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 2nd January, 2025
(INCOME-TAX)
S.O. 20(E).—In exercise of the powers conferred by sub-section (1F) of section 197A of the
Income-tax Act,1961 (43 of 1961) (hereinafter referred to as the said Act), the Central Government hereby
notifies that no deduction of income-tax under Chapter XVII of the said Act shall be made on the payments
received by a credit guarantee fund established and wholly financed by the Central Government and
managed by the National Credit Guarantee Trustee Company Limited as referred to in sub-clause (ii) of
clause (46B) of section 10 of the said Act.
2. This notification shall come into force from the date of its publication in the Official Gazette.
[F. No. 2/2025/F.No. 275/110/2024-IT(B)]
RUBAL SINGH, Dy. Secy. (IT-Budget)
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.

From when

the date of publication in the Official Gazette.

What to watch

Where you meet it

At the point of payment to such a fund, where the payer would otherwise deduct tax at source, and in the deductor's quarterly TDS statement.

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. 1/2025 [F.No. 275/25/2023-IT(B)] / SO 19(E)  ·  Notification No. 3/2025 [F. No. 275/109/2024-IT(B)] / SO 21(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.