Interest on securities
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 at the rates in force on the amount of the interest payable :
Provided that no tax shall be deducted from
(i) any interest payable on 4½ per cent. National Defence Bonds, 1972, where the bonds are held by an individual, not being a non-resident; or
(ia) any interest payable to an individual on 4½ per cent. National Defence Loan, 1968, or or 4¼ per cent. National Defence Loan, 1972 : or
(ii) any interest payable on National Savings Certificates (First Issue) : or
(iia) any interest payable on 7-Year National Savings Certificates (IV Issue) ; or
(iib) any interest payable on such debentures, issued by any co-operative society (including a co-operative land mortgage bank or a co-operative land development bank) or any other institution or authority, as the Central Government may, by notification in the Official Gazette, specify in this behalf ; or
(iii) any interest payable on 6$$ per cent. Gold Bonds, 1977, or 7 per cent. Gold Bonds, 1980, where the bonds are held by an individual not being a non-resident, and the holder thereof makes a declaration in writing before the person responsible for paying the interest that the total nominal value of the 6$$ per cent. Gold Bonds, 1977, or, as the case may be, the 7 per cent. Gold Bonds, 1980, 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 ;
(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 norminal 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.
[As amended by the Finance Act, 1973]