The CBDT has notified that Air India is not required to withhold withholding tax (TDS) for the transfer of fixed assets under a plan approved by the central government.
“In the exercise of the powers conferred by clause (viiaf) of Article 47 of the Income Tax Act, 1961 (43 of 1961), the central government hereby notifies the transfer of fixed assets in as part of a plan approved by central government from Air India Limited (PAN: AACCN6194P), being a ceding public sector company, to Air India Assets Holding Limited (PAN: AAQCA4703M), being a transferee public sector company, for the purposes of said clause “, the CBDT notified. This notification will enter into force as of April 1, 2022 and will apply, accordingly, for the tax year 2022-2023 and the following tax years.
“In exercising the powers conferred by subsection (1F) of Article 197A of the Income Tax Act, 1961 (43 of 1961), the central government specifies that no tax deduction will only be made under Section 194-IA of said Act on any payment made to Air India Limited (PAN: AACCN6194P) for the transfer of real estate to Air India Assets Holding Limited (PAN: AAQCA4703M) in connection with a plan approved by the central government, “the notification states. The notification is deemed to have entered into force as of April 1, 2021.
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