CONTEXT: The introduction of Section 194-O in the Income Tax Act during the Budget 2020 can have a disastrous effect on the economy, companies and livelihoods.
Significance of Section 194-O
Limitations of Section 194-O: The one-size-fits-all approach defeats the purpose of Ease of Doing Business in India due to the following issues.
Conclusion: Government needs to put in abeyance the applicability of Section 194-O and work towards issuing necessary clarifications on its applicability, and non-applicability, sector by sector.