Interest other than "Interest on securities"
1[Interest other than "Interest on securities"
194A. (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 chargeable under the head "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:
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 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.
(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, 2[be signed in the presence of—
(a) a Member of Parliament or a State Legislature ; or
(b) a Member of 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.]
(3) The provisions of sub-section (1) shall not apply—
(i) Where the income credited or paid at any one time does not exceed four hundred rupees ;
(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, 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, or
(d) The Unit Trust of India established under the Unit Trust of India Act, 1963, or
(e) Any company or co-operative society carrying on the business of insurance, or
(f) Such other institution, association or body 1[or class of institutions, associations or bodies] which the Central Government may, for reasons to be recorded in writing, notify in this behalf in the official gazette.
1[(iv) to such income credited or paid by a firm to a partner of the firm ;
(v) to such income credited or paid by a co-operative society to any other co-operative society.]
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.]
[As amended by Finance Act, 1969]