प्रतिभूतियों पर ब्याज के अलावा और ब्याज
34 [Interest other than "Interest on securities".
35 194A. 36(1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of interest other than income 37[by way of interest on securities], shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force.
38 [***]
39 [Explanation.—For the purposes of this section, where any income by way of interest as aforesaid is credited to any account, whether called "Interest payable account" or "Suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.]
(3) The provisions of sub-section (1) shall not apply—
41 [(i) where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the person referred to in sub-section (1) to the account of, or to, the payee, does not exceed 42[two thousand five hundred rupees:]
( a) time deposits with a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); or
( b) time deposits with a co-operative society engaged in carrying on the business of banking;
( c) deposits with a public company which is formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes and which is for the time being approved by the Central Government for the purpose of clause (viii) of sub-section (1) of section 36,
the provisions of this clause shall have effect as if for the words "two thousand five hundred rupees", the words "ten thousand rupees" had been substituted and the aforesaid amount shall be computed with reference to the income credited or paid by a branch of the banking company or the co-operative society or the public company, as the case may be;]
( ii) to such income credited or paid before the 1st day of October, 1967;
( iii) to such income credited or paid to—
( a) any banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies, or any co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank), or
( b) any financial corporation established by or under a Central, State or Provincial Act, or
( c) the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956), or
( d) the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963), or
( e) any company or co-operative society carrying on the business of insurance, or
( f) such other institution, association or body 44[or class of institutions, associations or bodies] which the Central Government may, for reasons to be recorded in writing, notify 45in this behalf in the Official Gazette;
( v) to such income credited or paid by a co-operative society 47[to a member thereof or] to any other co-operative society;]
48 [(vi) to such income credited or paid in respect of deposits under any scheme framed by the Central Government and notified 49by it in this behalf in the Official Gazette;
50 [(vii) to such income credited or paid in respect of deposits (other than time deposits made on or after the 1st day of July, 1995 with a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act);
( viia) to such income credited or paid in respect of,—
( a) deposits with a primary agricultural credit society or a primary credit society or a co-operative land mortgage bank or a co-operative land development bank;
( b) deposits (other than time deposits made on or after the 1st day of July, 1995) with a co-operative society, other than a co-operative society or bank referred to in sub-clause (a), engaged in carrying on the business of banking;]
51 [(viii) to such income credited or paid by the Central Government under any provision of this Act or the Indian Income-tax Act, 1922 (11 of 1922), or the Estate Duty Act, 1953 (34 of 1953), or the Wealth-tax Act, 1957 (27 of 1957), or the Gift-tax Act, 1958 (18 of 1958), or the Super Profits Tax Act, 1963 (14 of 1963), or the Companies (Profits) Surtax Act, 1964 (7 of 1964), or the Interest-tax Act, 1974 (45 of 1974).]
52 [Explanation.—For the purposes of clauses (i), (vii) and (viia ), "time deposits" means deposits (excluding recurring deposits) repayable on the expiry of fixed periods.]
53 [(4) The person responsible for making the payment referred to in sub-section (1) may, at the time of making any deduction, increase or reduce the amount to be deducted under this section for the purpose of adjusting any excess or deficiency arising out of any previous deduction or failure to deduct during the financial year.]
34. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
35. See also Circular No. 288, dated 22-12-1980, Circular No. 256, dated 29-5-1979, Circular No. 22/68-IT(B), dated 28-3-1968/13-5-1968 as modified by Letter [F. No. 12/23/68-IT(B)], dated 7-11-1968, Circular No. 65, dated 2-9-1971, Letter [F. No. 12/12/68-IT(A-II)], dated 23-9-1968, Letter [F.No. 12/113/68-IT(A-II)], dated 28-10-1968, Letter [F.No. 275/109/92-IT(B)], dated 21-9-1994, Circular No. 626, dated 12-2-1992, Circular No. 643, dated 23-1-1993, Circular No. 647, dated 22-3-1993, Circular No. 715, dated 8-8-1995 and Circular No. 716, dated 9-8-1995. For details, see Taxmann’s Master Guide to Income-tax Act.
36. See rules 28(1), 28AA, 29C, 30, 31 and 37 and Form Nos. 13, 15AA, 15H, 16A and 26A.
37. Substituted for ‘chargeable under the head "Interest on securities" ’ by the Finance Act, 1988, w.e.f. 1-4-1989.
38. Omitted by the Finance Act, 1992, w.e.f. 1-6-1992. Prior to omission, proviso read as under:
" Provided that no such deduction shall be made in a case where the person (not being a company or a registered firm) entitled to receive such income furnishes to the person responsible for making the payment—
( a) an affidavit, or
( b) a statement in writing,
declaring that his estimated total income assessable for the assessment year next following the financial year in which the income is credited or paid will be less than the minimum liable to income-tax."
39. Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.
40. Prior to omission, sub-section (2) as amended by the Finance Act, 1968, w.e.f. 1-4-1968, read as under :
"(2) The statement in writing referred to in sub-section (1) shall also contain such other particulars as may be prescribed, be verified in the prescribed manner, be signed in the presence of—
( a) a Member of Parliament or a State Legislature; or
( b) a Member of a District Council or a Metropolitan Council, a Municipal Corporation or Municipal Committee; or
( c) a Gazetted Officer of the Central or a State Government; or
( d) an officer of any banking company (including a co-operative bank) of the rank of sub-agent, agent or manager,
and bear an attestation by such member or officer to the effect that the person who has signed the statement is known to him."
41. Substituted by the Finance Act, 1975, w.e.f. 1-4-1975. Section 20(2) of the Finance Act, 1975 makes an independent provision relating to substitution of clause (i ). Sub-section (2) of section 20 read as under :
‘(2) Notwithstanding the substitution of clause (i) of sub-section (3) of section 194A of the Income-tax Act, by sub-section (1) of this section nothing in section 201 or section 276B of that Act shall apply to, or in relation to, any failure to deduct income-tax under sub-section (1) of the said section 194A on any income by way of interest other than income chargeable under the head "Interest on securities" credited or paid on or after the 1st day of April, 1975, but before the 1st day of June, 1975, where the income so credited or paid at any one time does not exceed four hundred rupees.’
42. Substituted for "one thousand rupees" by the Finance Act, 1987, w.e.f. 1-6-1987.
43. Substituted by the Finance (No. 2) Act, 1996, w.e.f. 1-10-1996. Prior to its substitution, proviso, as inserted by the Finance Act, 1995, w.e.f. 1-7-1995, read as under :
‘Provided that in respect of the income credited or paid in respect of time deposits with a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) or with a co-operative society engaged in carrying on the business of banking, the provisions of this clause shall have effect as if for the words "two thousand five hundred rupees", the words "ten thousand rupees" had been substituted and the aforesaid amount shall be computed with reference to the income credited or paid by a branch of the banking company or the co-operative society, as the case may be;’
44. Inserted by the Finance Act, 1968, w.e.f. 1-4-1968.
45. For complete list of notified institutions, see Taxmann’s Master Guide to Income-tax Act.
46. Reintroduced by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988. Earlier, it was omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date. Original clause (iv) was inserted by the Finance Act, 1968, w.e.f. 1-4-1968.
47. Inserted by the Finance (No. 2) Act, 1971, w.e.f. 1-4-1971.
48. Inserted by the Finance Act, 1970, w.e.f. 1-4-1971.
49. For specified certificates/deposit scheme, see Taxmann’s Master Guide to Income-tax Act.
50. Substituted for clause (vii) by the Finance Act, 1995, w.e.f. 1-7-1995. Prior to its substitution, clause (vii) as substituted for clauses (vii) and (viia) by the Finance Act, 1992, w.e.f. 1-6-1992, which were earlier substituted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991, read as under :
"( vii) to such income credited or paid in respect of deposits with a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act), or with a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank);"
51. Inserted by the Finance Act, 1975, w.e.f. 1-4-1975.
52. Inserted by the Finance Act, 1995, w.e.f. 1-7-1995.
53. Inserted by the Finance Act, 1975, w.e.f. 1-4-1975.
54. Prior to omission, Explanation read as under :
‘ Explanation.—In this section, "Gazetted Officer" includes a Tehsildar or a Mamlatdar of a Taluka or Tehsil or any other officer performing functions similar to those of a Tehsildar or Mamlatdar.’