Section 193

Interest on securities

193. The person responsible for paying any income chargeable under the head "Interest on securities" shall, at the time of payment, deduct income-tax ⁵[***] at the rates in force on the amount of the interest payable :

⁶[Provided that no tax shall be deducted from—

(i) any interest payable on 4¼ per cent National Defence Bonds, 1972, where the bonds are held by an individual, not being a non-resident; or

¹[(i-a) any interest payable to an individual on 4¼ per cent National Defence loan, 1968, or 41/4 per cent National Defence Loan, 1972 ; or]

(ii) any interest payable on National Savings Certificates (First Issue) ; or

(iii) any interest payable on 6½ per cent Gold Bonds, 1977 or 7 per cent Gold Bonds, 1980, where the bonds are held by an individual not being a non-resident, and the holder thereof makes a declaration in writing before the person responsible for paying the interest that the total nominal value of the 6½ per cent Gold Bonds, 1977 or, as the case may be, the 7 per cent Gold Bonds, 1930 held by him (including such bonds, if any held on his behalf by any other person) did not in either case exceed ten thousand rupees at any time during the period to which the interest relates;

²[(iv) any interest payable on any other security of the Central or State Government, where the security is held by an individual, not being a non-resident, and the holder thereof makes a declaration in writing before the person responsible for paying the interest that—

(a) he has not previously been assessed under this Act or under the Indian Income-tax Act, 1922;

(b) his total income of the previous year in which the interest is due is not likely to exceed the maximum amount not chargeable to tax ; and

(c) the total nominal value of the securities held by him (including such securities, if any, as are held on his behalf by any other person) did not exceed two thousand five hundred rupees at any time during the said previous year.]

³[***]

[As amended by Finance Act, 1967]