CHAPTER XVII — COLLECTION AND RECOVERY OF TAX · B.—DEDUCTION AT SOURCE
CHAPTER XVII — COLLECTION AND RECOVERY OF TAX · B.—DEDUCTION AT SOURCE
Section 206B — Person Paying Dividend to Furnish Prescribed Return (Omitted)
Case Laws & Commentary · Income-tax Act, 1961 (as amended by the Finance Act, 2026) · bharattax.co Treatise
Status: Omitted. Spent.
Finance Act, 2026: No amendment (long omitted).
Mechanism: Historically required a return of dividend payments; no current operation. Live dividend deduction is under sections 194/195.
Litigation profile: None. Omitted and spent — the candour rule applies.
A. SECTION COMMENTARY
Section 206B required a person paying dividend to a shareholder to furnish a prescribed return/statement in respect of such payment. It belonged to an earlier architecture of dividend taxation and reporting and has long since been omitted from the Act; it has no current operation. Dividend taxation now operates through the post-Finance Act, 2020 regime (taxation in the shareholder's hands with deduction under section 194 for residents and section 195 for non-residents), and dividend reporting is captured by the general statement and information provisions.
A spent, omitted provision — candour
Section 206B is of historical interest only; it generated no body of judicial authority of present relevance. In candour, it is noted for completeness to close the Part-B enumeration; the live law on dividend deduction is in sections 194 and 195, and on reporting in the general statement regime.
B. STATUTORY POSITION (verbatim text)
Reproduced from the Income-tax Act, 1961 as amended up to the Finance Act, 2025 (the Finance Act, 2026 makes no amendment to this section). Editorial markers “***” denote text omitted by the Legislature.
206B. Omitted by the Finance (No. 2) Act, 1996, w.e.f. 1-10-1996.
C. AUTHORITIES
Candour rule strictly observed: section 206B is omitted and spent. Noted for completeness; live dividend deduction is under sections 194/195.
No current authority — legislative note
Spent dividend-reporting provision
Principle: Section 206B (dividend-payment return) has been omitted and has no current operation; dividend deduction is now under sections 194 (residents) and 195 (non-residents), with reporting under the general statement/information provisions.
Use: Closes the Part-B enumeration and directs the reader to the live provisions.
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text is reproduced verbatim from the bare Act; case-law citations have been web-verified. Where a section is new, narrow or substantially unlitigated, the candour rule is observed — the absence of direct authority is stated and only genuinely cognate authority is offered. This digest is for professional reference and is not a substitute for the official report of any judgment.
CHAPTER XVII — COLLECTION AND RECOVERY OF TAX · B.—DEDUCTION AT SOURCE
Section 206B — Person Paying Dividend to Furnish Prescribed Return (Omitted)
Case Laws & Commentary · Income-tax Act, 1961 (as amended by the Finance Act, 2026) · bharattax.co Treatise
Status: Omitted. Spent.
Finance Act, 2026: No amendment (long omitted).
Mechanism: Historically required a return of dividend payments; no current operation. Live dividend deduction is under sections 194/195.
Litigation profile: None. Omitted and spent — the candour rule applies.
A. SECTION COMMENTARY
Section 206B required a person paying dividend to a shareholder to furnish a prescribed return/statement in respect of such payment. It belonged to an earlier architecture of dividend taxation and reporting and has long since been omitted from the Act; it has no current operation. Dividend taxation now operates through the post-Finance Act, 2020 regime (taxation in the shareholder's hands with deduction under section 194 for residents and section 195 for non-residents), and dividend reporting is captured by the general statement and information provisions.
A spent, omitted provision — candour
Section 206B is of historical interest only; it generated no body of judicial authority of present relevance. In candour, it is noted for completeness to close the Part-B enumeration; the live law on dividend deduction is in sections 194 and 195, and on reporting in the general statement regime.
B. STATUTORY POSITION (verbatim text)
Reproduced from the Income-tax Act, 1961 as amended up to the Finance Act, 2025 (the Finance Act, 2026 makes no amendment to this section). Editorial markers “***” denote text omitted by the Legislature.
206B. Omitted by the Finance (No. 2) Act, 1996, w.e.f. 1-10-1996.
C. AUTHORITIES
Candour rule strictly observed: section 206B is omitted and spent. Noted for completeness; live dividend deduction is under sections 194/195.
No current authority — legislative note
Spent dividend-reporting provision
Principle: Section 206B (dividend-payment return) has been omitted and has no current operation; dividend deduction is now under sections 194 (residents) and 195 (non-residents), with reporting under the general statement/information provisions.
Use: Closes the Part-B enumeration and directs the reader to the live provisions.
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text is reproduced verbatim from the bare Act; case-law citations have been web-verified. Where a section is new, narrow or substantially unlitigated, the candour rule is observed — the absence of direct authority is stated and only genuinely cognate authority is offered. This digest is for professional reference and is not a substitute for the official report of any judgment.