Insertion of new section 194F

40. After section 194E of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 1991, namely: —

"194F. Payments on account of repurchase of units by Mutual Fund or Unit Trust of India.—The person responsible for paying to any person any amount referred to in sub-section (2) of section 80CCB shall, at the time of payment thereof, deduct income-tax thereon at the rate of twenty per cent.".

[Finance Act, 1990]