Certificate for deduction at lower rate
Certificate for deduction at lower rate.
197. **(1) Where, in the case of any income of any person other than a company—
1[(a) income-tax is required to be deducted at the time of credit or, as the case may be, at the time of payment at the rates in force under the provisions of sections 192, 193, 194A 2[, 194B] 3[, 194BB] 4[, 194D] and 195],
(b) being a non-resident, 5[income-tax] is required to be deducted at the time of payment at the rates in force under the provisions of section 194,
the Income-tax Officer is satisfied that the total income 6[* * *] of the recipient justifies the deduction of income-tax 7[* * *] at any lower rates or no deduction of income-tax 7[* * *], as the case may be, the Income-tax Officer shall, on an application made by the assessee in this behalf, give to him such certificate as may be appropriate.
(2) Where any such certificate is given, the person responsible for paying the income shall, until such certificate is cancelled by the Income-tax Officer, deduct income-tax 8[* * *] at the rates specified in such certificate or deduct no tax, as the case may be.
1[(3) Where the principal officer of a company considers that, by reason of the provisions of section 80K, the whole or any portion of the dividend referred to in section 194 will be deductible in computing the total income of the recipient, he may, before paying the dividend to the shareholder or issuing any cheque or warrant in respect thereof, make an application to the Income-tax Officer to determine the appropriate proportion of the dividend to be deducted under the provisions of section 80K; and on such determination by the Income-tax Officer no tax shall be deducted on such proportionate amount.]
1. Substituted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
2. Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
3. Inserted by the Finance Act, 1978, w.e.f. 1-4-1978.
4. Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
5. Substituted for "super-tax" by the Finance Act, 1965, w.e.f. 1-4-1965.
6. "or the total world income" omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
7. "or super-tax" omitted, by the Finance Act, 1965, w.e.f. 1-4-1965.
8. "and super-tax" omitted, by the Finance Act, 1965, w.e.f. 1-4-1965.
** See rules 28(1), (1A),(1B), (1BB), (1D) and Form Nos. 13, 13A, 13B, 13BB, 13D. Also see rules 28 3 and 29 and Form No. 11A.
1. Substituted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.
[AS AMENDED BY THE FINANCE ACT, 1982]