CBDT Relieves Diplomatic Missions and UN Agencies from IT Section 194N Tax Provisions:
1. The Central Board of Direct Taxes (CBDT) in development has furnished Notification No. 123/2024, dated November 28, 2024, exempting the particular foreign representations and international organizations from the provisions of Section 194N of the Income-tax Act, 1961.
2. As per the exemption, entities like diplomatic missions, United Nations agencies, consulates, and honorary consuls, which want tax exemptions under the Diplomatic Relations (Vienna Convention) Act, 1972, and the United Nations (Privileges and Immunities) Act, 1947, will not be hit by the TDS provisions u/s 194N.
3. The very section obligates tax deduction on cash withdrawals of more than a specified limit.
The copy of the Notification is as under:
