Chapter XVII
Collection and Recovery of Tax
A.—General
Deduction at
source and advance payment.
190.
(1) Notwithstanding
that the regular assessment in respect of any income is to be made in a later assessment
year, the tax on such income shall be payable by deduction 78[R1] [or
collection] at source or by advance payment, as the case may be, in accordance
with the provisions of this Chapter.
(2) Nothing in this section shall
prejudice the charge of tax on such income under the provisions of sub-section
(1) of section 4.
79[R2] 191. 80[R3] [***]
In the case of income in respect of which provisions is not made under this
Chapter for deducting income-tax at the time of payment, and in any case where
income-tax has not been deducted in accordance with the provisions of this
Chapter, income-tax shall be payable by the assessee
direct.
B.—Deduction at source
82[R5] 192. 83-84[R6] (1) Any person responsible for paying any
income chargeable under the head “Salaries” shall, at the time of payment,
deduct income-tax 85[R7] [***]
on the amount payable at the average of income-tax 86[R8] [***]
computed on the basis of the 87[R9] [ates in force] for the financial year in which the payment
is made, on the estimated income of the assessee
under this head for the financial year.
88[R10] [(2) Where,
during the financial year, an assessee is employed simultaneously
under more than one employer, or where he has held successively employment
under more than one employer, he may furnish to the person responsible for
making the payment referred to in sub-section (1) (being one of the said
employers as the assessee may, having regard to the
circumstances of his case, choose), such details of the income under the head
“Salaries” due or received by him from the other employer or employers, the tax
deducted at source there from and such other particulars, in such form and
verified in such manner as may be prescribed, and thereupon the person
responsible for making the payment referred to above shall take into account
the details so furnished for the purposes of making the deduction under
sub-section (1).]
89[R11] [(2A) Where
the assessee, being a Government servant or an employee
in a 90[R12] [company, co-operative society, local
authority, university, institution, association or body] is entitled to the
relief under sub-section (1) of section 89, he may furnish to the person
responsible for making the payment referred to in sub-section (1), such
particulars, in such form and verified in such manner as may be prescribed, and
thereupon the person responsible as aforesaid shall compute the relief on the
basis of such particulars and take it into account in making the deduction
under sub-section (1).]
1[R13] [Explanation : For the purposes of this
sub-section, “University” means a University established or incorporated by or
under a Central, State or Provincial Act, and includes an institution declared
under section 3 of the University Grants Commission Act, 1956 (3 of 1956) to be
a university for the purposes of that Act.]
92[R14] [(2B) Where
an assessee who receives any income chargeable under
the head “Salaries” has, in addition, any income chargeable under any other
head of income (not being a loss under any such head) for the same financial
year, he may send to the person responsible for making the payment referred to
in sub-section (1) the particulars of such other income and of any tax deducted
thereon under any other provision of this Chapter, in such form and verified in
such manner as may be prescribed, and thereupon the person responsible as
aforesaid shall take such other income and the tax, if any, deducted thereon
also into account for the purposes of making the deduction under sub-section
(1):
Provided
that this sub-section shall not in any case have the effect of reducing the tax
deductible from the income under the head “Salaries” below the amount that would
be so deductible if the other income and the tax deducted thereon had not been
taken into account.]
(3) The person responsible for making the
payment referred to in sub-section (1) 93[R15] [or sub-section (2) or sub-section (2A) or sub-section
(2B)] 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.
(4) The trustees of a recognised
provident fund, or any person authorised by the
regulations of the fund to make payment of accumulated balances due to
employees, shall, in cases where sub-rule (1) of rule 9 of Part A of the Fourth
Schedule applies, at the time an accumulated balance due to an employee is
paid, make therefrom the deduction provided in rule
10 of Part A of the Fourth Schedule.
94[R16] (5) Where
any contribution made by an employer, including interest on such contributions,
if any, in an approved superannuation fund is paid to the employee, 95[R17] [tax] on the amount so paid shall be
deducted by the trustees of the fund to the extent provided in rule 6 of Part
B of the Fourth Schedule.
96[R18] (6) For the purposes of deduction of tax on salary payable in
foreign currency, the value in rupees of such salary shall be calculated at the
prescribed rate of exchange.
98[R20] Interest on securities.
99[R21] 193. The person responsible
for paying any income 1[R22] [by way of ‘interest on securities’] shall,
2[R23] [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 3[R24] [***] at the rates in force on the amount
of the interest payable:
[R25] [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
5[R26] [(ia) any interest payable to an individual on 4¼
per cent National Defence Loan, 1968, or 4 ¾ per cent
National Defence Loan, 1972; or]
6[R27] [(ib)
any interest payable on National Development Bonds; or]
8[R29] [(iia) any interest payable on 7-Year National
Savings Certificates (IV Issue); or]
9[R30] [(iib) any interest payable on such debentures,
issued by any institution or authority, or any public sector company, or any
co-operative society (including a co-operative land mortgage bank or a co-operative
land development bank), as the Central Government may, by notification in the
Official Gazette, specify10[R31] in this behalf.]
(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, 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;
12[R33] [(iiia)any interest
payable on such securities of the Central Government or a State Government, to
such class of persons, and subject to such conditions, as the Central
Government may, by notification13[R34] in the Official Gazette, specify in this
behalf;]
14[R35] [(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 (11 of 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.]]
15[R36] [(v) any
interest payable to an individual, who is resident in India, on debentures
issued by a company in which the public are substantially interested, being
debentures listed on a recognised stock exchange in
India in accordance with the Securities Contracts (Regulation) Act, 1956 (42
of 1956), and any rules made thereunder, if—
(a) the interest is
paid by the company by an account payee cheque; and
(b) the amount of such interest or, as the
case may be, the aggregate of the amounts of such interest paid or likely to be
paid during the financial year by the company to such individual does not
exceed 16[R37] [two thousand and five hundred rupees].]
7[R38] [Explanation : For
the purposes of this section, where any income by way of interest on securities
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 persons
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.]
Dividends.
18[R39] 194. 19[R40] The principal officer of an Indian company
or a company which has made the prescribed arrangements for the declaration and
payment of dividends (including dividends on preference shares) within India,
shall, before making any payment in cash or before issuing any cheque or warrant in respect of any dividends or before
making any distribution or payment to a shareholder, of any dividend within the
meaning of sub-clause (a) or sub-clause (b) or sub-clause (c) or sub-clause (d)
or sub-clause (e) of clause (22) of section 2, deduct from the amount of such
dividend, income-tax 20[R41] [***] at the rates in force:
1[R42] [Provided that no such deduction shall be
made in the case of a shareholder, being an individual, who is resident in
(a) the dividend is
paid by such company by an account payee cheque; and
(b) the amount of such dividend or, as the
case may be, the aggregate of the amount of such dividend distributed or paid
or likely to be distributed or paid during the financial year by the company to
the shareholder, does not exceed 22[R43] [two thousand five hundred rupees]:
3[R44] Provided 24[R45] [further] that where in the case of any
shareholders, not being a company, the 25[R46] [Assessing] Officer gives a certificate in
writing in the prescribed manner26[R47] that to the best of his belief the total
income 27[R48] [***] of the shareholder will be less than
the minimum liable to income-tax, the person responsible for paying any
dividend to the shareholder shall so long as the certificate is in force pay
the dividend without any deduction.
28[R49] [Interest other than “Interest on securities”.
29[R50] 194A.30[R51] (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 31[R52] [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:
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.
32[R53] [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.]
33[R54] (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, 34[R55] [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 Gazette
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—
35[R56] [(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 36[R57] [two thousand five 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 (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
(d) the Unit Trust
of
(e) any company or
co-operative society carrying on the business of insurance, or
37[R58] (f) such
other institution, association or body 38[R59] [or class of institutions, association or bodies]
which the Central Government may, for reasons to be recorded in writing, notify
in this behalf in the Official Gazette;
(iv) 39[R60] [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 40[R61] [to a member thereof or] to any other
co-operative society;]
41[R62] [(vi) to
such income credited or paid in respect of deposits under any 42[R63] scheme framed by the Central Government and
notified by it in this behalf in the Official Gazette;
(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);]
43[R64] [(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).]
44[R65] [(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.]
Explanation:
In this section, “Gazette 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.]
45[R66] [Winnings from
lottery or crossword puzzle.
46[R67] 194B.47[R68] The person responsible for paying to any
person any income by way of winnings from any lottery or crossword puzzle in an
amount exceeding 48[R69] [five thousand rupees] shall, at the time
of payment thereof, deduct income-tax thereon at the rates in force:
Provided
that no deduction shall be made under this section from any payment made before
the 1st day of June, 1972.]
49[R70] [Winnings from
horse race.
50[R71] 194BB. 51[R72] Any person, being a bookmaker or a person
to whom a licence has been granted by the Government under
any law for the time being in force for horse reacing
in any race course or for arranging for wagering or betting in any race course,
who is responsible for paying to any person any income by way of winnings from
any horse race in an amount exceeding 52[R73] [five thousand rupees] shall, at the time
of payment thereof, deduct income-tax thereon at the rates in force:
Provided
that no deduction shall be made under this section from any payment made before
the 1st day of June, 1978.]
45[R74] [Payments to
contractors and sub-contractors.
53[R75] 194C. 54[R76] (1) Any person responsible for paying any
sum to any resident (hereafter in this section referred to as the contractor)
for carrying out any work (including supply of labour
for carrying out any work) in pursuance of a contract between the contractor
and—
(a) the Central
Government or any State overnment; or
(b) any local
authority; or
(c) any corporation
established by or under a Central, State or Provincial Act; or
55[R78] [(e) Any
co-operative society,]Shall, at the time of credit of
such sum to the account of the contractor 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 an amount equal to two per cent of such sum
as income-tax on income comprised therein.
(2) Any
person (being a contractor and not being an individual or a Hindu undivided
family) responsible for paying any sum to any resident (hereafter in this section
referred to as the sub-contractor) in pursuance of a contract with the
sub-contractor for carrying out, or for the supply of labour
for carrying out, the whole or any part of the work undertaken by the
contractor or for supplying whether wholly or partly any labour
which the contractor has undertaking to supply shall, at the time of credit of
such sum to the account of the sub-contractor 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 an amount equal to one per cent of
such sum as income-tax on income comprised therein.
56[R79] [Explanation: For the purposes of this
section, where any sum referred to in sub-section (1) or sub-section (2) is
credited to any account, whether called “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) No
deduction shall be made under sub-section (1) or sub-section (2) from—
(i) any sum credited or paid in pursuance of any contract the
consideration for which does not exceed 57[R80] [ten] thousand rupees; or
(ii) any sum
credited or paid before the 1st day of June, 1972; 58[R81] [or]
58[R82] [(iii) any
sum credited or paid before the 1st day of June, 1973, in pursuance of a
contract between the contractor and a co-operative society or in pursuance of a
contract between such contractor and the sub-contractor in relation to any work
(including supply of labour for carrying out any
work) undertaken by the contractor for the co-operative society.]
59[R83] (4) Where
the 60[R84] [Assessing] Officer is satisfied that the
total income of the contractor or the sub-contractor justifies the deduction of
income-tax at any lower rate or no deduction of income-tax, as the case may be,
the 60[R85] [Assessing] Officer shall, on an
application made by the contractor or the sub-contractor in this behalf, give
to him such certificate as may be appropriate.
(5) Where any such certificate is given, the
person responsible for paying the sum referred to in sub-section (1) or
sub-section (2) shall until such certificate is cancelled by the 60[R86] [Assessing] Officer, deduct income-tax at
the rates specified in such certificate or deduct no tax, as the case may be.]
61[R87] [Insurance
commission.
62[R88] 194D.63[R89] Any person responsible for paying to a resident
any income by way of remuneration on reward, whether by way of commission or
otherwise for soliciting or procuring insurance business (including business
relating to the continuance, renewal or revival of policies of insurance)
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 deduction shall be made under this section from any such income
credited or paid before the 1st day of June, 1973.]
64[R90] [Provided further that no deduction shall
be made under this section in a case 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 to the account of, or
to the payee, does not exceed five thousand rupees.]
65[R91] [Payments to
non-resident sportsmen or sports associations.
194E. Where any income referred to in section
115BBA is payable to a non-resident sportsman (including an athlete) who is not
a citizen of India or a non-resident sports association or institution, the
person responsible for making the payment 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 rate of ten per cent.]
The following section shall be
inserted by the Finance Act, 1990, w.e.f. 1-4-1991:
Payments on
account of repurchase of units by Mutual Fund or Unit Trust of
194F. The person
responsible for paying to any person any amount referred to in sub-section (2)
of section 80CCB shall, at the time of payment thereof, deduct income-tax
thereon at the rate of twenty per cent.
Other sums.
66[R92] 195.67[R93] [(1) 68[R94] Any person responsible for paying to a
non-resident, not being a company, or to a foreign company, any interest (not being
on securities) or any other sum chargeable under the provisions of this Act
(not being income chargeable under the head “Salaries” or dividends) 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 the issue of a cheque
or draft or by any other mode, whichever is earlier, deduct income-tax thereon
at the rates in force:
69[R95] [Provided that in the case of interest
payable by the Government or a public sector bank within the meaning of clause
(23D) of section 10 or a public financial institution within the meaning of
that clause, deduction of tax shall be made only at the time of payment thereof
in cash or by the issue of a cheque or draft or by
any other mode.]
Explanation
: For the purposes of this section, where any interest or other sum 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.]
(2) Where the person responsible for paying any
such sum chargeable under this Act (other than 70[R96] [* * *] interest on securities, dividend
and salary) to a non-resident considers that the whole of such sum would not be
income chargeable in the case of the recipient, he may make an application to
the 71[R97] [Assessing] Officer to determine, 72[R98] [by general or special order], the
appropriate proportion of such sum so chargeable, and upon such determination,
tax shall be deducted under sub-section (1) only on that proportion of the sum
which is so chargeable:
73[R99] [Provided that this sub-section shall not
apply to any payment to a foreign company by way of interest referred to in
clause (v), or royalty referred to in clause (vi), or fees for technical
services referred to in clause (vii), of sub-section (1) of section 9.]
74[R100] [(3)
Subject to rules made under sub-section (5), any person entitled to receive any
interest or other sum on which income-tax has to be deducted under sub-section
(1) may make an application in the prescribed form to the 71[R101] [Assessing]
Officer for the grant of a certificate authorising him
to receive such interests or other sum without deduction of tax under that
sub-section and, where any such certificate is granted, every person
responsible for paying such interest or other sum to the person to whom such
certificate is granted shall, so long as the certificate is in force, make
payment of such interest or other sum without deducting tax thereon under
sub-section (1).
(4) A
certificate granted under sub-section (3) shall remain in force till the expiry
of the period specified therein or, if it is cancelled by the 71[R102] [Assessing]
Officer before the expiry of such period, till such cancellation.
75[R103] (5) The Board may, having regard to the
convenience of assessees and the interests of revenue, by notification in the Official
Gazette, make rules specifying the cases in which, and the circumstances under
which, an application may be made for the grant of a certificate under
sub-section (3) and the conditions subject to which such certificate may be
granted and providing for all other matters connected therewith.]
76[R104] [Income payable “net of tax”.
195A. Where, under an agreement or other
arrangement, the tax chargeable on any income referred to in the foregoing
provisions of this Chapter is to be borne by the person by whom the income is
payable, then, for the purposes of deduction of tax under those provisions such
income shall be increased to such amount as would, after deduction of tax
thereon at the rates in force for the financial year in which such income is payable,
be equal to the net amount payable under such agreement or arrangement.]
77[R105] [Interest or dividend or other sums payable to Government,
Reserve Bank or certain corporations.
196. Notwithstanding anything contained in the
foregoing provisions of this Chapter, no deduction of tax shall be made by any
person from any sums payable to—
(i) the Government, or
(ii) the Reserve
Bank of
(iii) a corporation established by or under a
Central Act which is, under any law for the time being in force, exempt from
income-tax on its income, or
(iv) a Mutual Fund specified under clause
(23D) of section 10,where such sum is payable to it by way of interest or
dividend in respect of any securities of shares owned by it or in which it has
full beneficial interest, or any other income accruing or arising to it.]
78[R106] [Tax not to be deducted from any
income payable to unit-holders of Mutual Fund.
196A.
(1) Subject to the provisions of
sub-section (2), no deduction of tax shall be made from any income payable in
respect of units of a Mutual Fund, specified under clause (23D) of section10,
to its unit-holders being persons other than foreign companies.
(2) Where any income referred to in sub-section
(1) is payable to a unit-holder, being a foreign company, the person
responsible for making the payment 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 the
issue of a cheque or draft or by any other mode,
whichever is earlier, deduct income-tax thereon at the rate of twenty-five per
cent.
Certificate for
deduction at lower rate.
197. 79[R107] (1) 80[R108] [Subject
to rules made under sub-section (2A), where, in the case of any income of any
person other than a company],—
81[R109] [82[R110] (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 83[R111] [***] 84[R112] [***] 85[R113] [,
194D] and 195],
(b) Being a non-resident, 86[R114] [income-tax]
is required to be deducted at the time of payment at the rates in force under
the provisions of section 194,the 87[R115] [Assessing]
Officer is satisfied that the total income 88[R116] [***]
of the recipient justifies the deduction of income-tax 89[R117] [***]
at any lower rates or no deduction of income-tax 89[R118] [***],
as the case may be, the 87[R119] [Assessing]
Officer shall, on an application made by the assessee
in this behalf, give to him such certificate90[R120] 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 87[R121] [Assessing]
Officer, deduct income-tax 91[R122] [***] at
the rates specified in such certificate or deduct no tax, as the case may be.
92[R123] [(2A)
The Board may, having regard to the convenience of assessees and the interests
of revenue, by notification in the Official Gazette, make rules specifying the
cases in which, and the circumstances under which, an application may be made
for the grant of a certificate under sub-section (1) and the conditions subject
to which such certificate may be granted and providing for all other matters
connected therewith.]
94[R125] [No deduction to be made in
certain cases.
95[R126] 197A. 96[R127] (1)
Notwithstanding anything contained in section 193 or section 194 or section
194A, no deduction of tax shall be made under any of the said sections in the
case of an individual, who is resident in India, if such individual furnishes
to the person responsible for paying any income of the nature referred to in
section 193 or section 194 or, as the case may be, section 194A, a declaration
in writing in duplicate in the prescribed form and verified in the prescribed
manner to the effect that 96a[R128] [the
tax on his estimated total income of the previous year in which such income is
to be included in computing his total income will be nil.]
(2) The
person responsible for paying any income of the nature referred to in
sub-section (1) shall deliver or cause to be delivered to the 97[R129] [Chief
Commissioner or Commissioner] one copy of the declaration referred to in
sub-section (1) on or before the seventh day of the month next following the
month in which the declaration is furnished to him.]
Tax deducted is income received.
198. All sums deducted in accordance with the
provisions of 98[R130] [sections
192 to 194, section 194A 99[R131] [,section 194B] 1[R132] [,section
194BB] 99[R133] [,section
194C] 2[R134] [,section
194D] 3[R135] [,section
194E] 4[R136] [,
section 195 and section 196A]] shall, for the purpose of computing the income
of an assessee, be deemed to be income received.
5[R137] 199. Any deduction made in accordance with the
provisions of 6[R138] [sections
192 to 194, section 194A 7[R139] [,
section 194B] 8[R140] [,
section 194BB] 7[R141] [,
section 194C] 9[R142] [,section
194D] 10[R143] [,section
194E] 11[R144] [,
section 195 and section 196A]] and paid to the Central Government shall be treated
as a payment of 12[R145] [tax]
on behalf of the person from whose income the deduction was made, or of the
owner of the security or of the shareholder, as the case may be, and credit
shall be given to him for the amount so deducted on the production of the
certificate furnished under section 203 in the assessment 13[R146] [***] 14[R147] [made
under this Act for the assessment year for which such income is assessable]:
(i) in a case
where such person or owner or shareholder is a person, whose income is included
under the provisions of section 60, section 61, section 64, section 93 or
section 94 in the total income of another person, the payment shall be deemed
to have been made on behalf of, and the credit shall be given to, such other person;
16[R149] (ii) in any other case, where the dividend
on any share is assessable as the income of a person other than the shareholder,
the payment shall be deemed to have been made on behalf of, and the credit
shall be given to, such other person in such
circumstances as may be prescribed:
Provided further that where any
security or share in a company is owned jointly by two or more persons not
constituting a partnership, the payment shall be deemed to have been made on
behalf of, and the credit shall be given to, each such person in the same
proportion in which the interest on such security or dividend on such share is
assessable as his income.]
Duty of person
deducting tax.
200. 17[R150] Any
person deducting any sum in accordance with the provisions of 6[R151] [sections
192 to 194, section 194A 7[R152] [,
section 194B] 8[R153] [,
section 194BB] 7[R154] [,
section 194C] 9[R155] [,
section 194D] 10[R156] [,
section 194E] 11[R157] [,
section 195 and section 196A]] shall pay within the prescribed time, the sum so
deducted to the credit of the Central Government or as the Board directs.
Consequences of
failure to deduct or pay.
201.
(1) If any such person and in the cases
referred to in section 194, the principal officer and the company of which he
is the principal officer does not deduct or after deducting fails to pay the
tax as required by or under this Act, he or it shall, without prejudice to any
other consequences which he or it may incur, be deemed to be an assessee in default in respect of the tax:
Provided
that no penalty shall be charged under section 221 from such person, principal
officer or company unless the 18[R158] [Assessing]
Officer is satisfied that such person or principal officer or company, as the
case may be, has 19[R159] [without
good and sufficient reasons] failed to deduct and pay the tax.
20[R160] [(1A) 21[R161] Without
prejudice to the provisions of sub-section (1), if any such person, principal
officer or company as is referred to in that sub-section does not deduct or
after deducting fails to pay the tax as required by or under this Act, he or it
shall be liable to pay simple interest at 22[R162] [fifteen]
per cent per annum on the amount of such tax from the date on which such tax
was deductible to the date on which such tax is actually paid.]
(2) where the tax has not been paid as
aforesaid after it is deducted, 23[R163] [the
amount of the tax together with the amount of simple interest thereon referred
to in sub-section (1A)] shall be a charge upon all the assets of the person, or
the company, as the case may be, referred to in sub-section
(1).]
Deduction only
one mode of recovery.
202. The power to 24[R164] [ecover] tax by deduction under 25[R165] [sections
192 to 194, section 194A 26[R166] [,
section 194B] 27[R167] [,
section 194BB] 26[R168] [,
section 194C] 28[R169] [, section
194D] 29[R170] [,
section 194E] 30[R171] [,
section 195 and section 196A]] shall be without prejudice to any other mode of
recovery.
31[R172] [Certificate for tax deducted.
32[R173] 203. 33[R174] Every person
deducting tax in accordance with the provisions of sections 192 to 194,
section 194A 34[R175] [section
194B] 35[R176] [,
section 194BB] 34[R177] [,
section 194C] 36[R178] [,
section 194D] 37[R179] [,
section 194E] 38[R180] [,
section 195 and section 196A], 39[R181] [shall,
within such period as may be prescribed from the time of credit or payment of
the sum, or, as the case may be, from the time of issue of a cheque or warrant for payment of any dividend to a
shareholder], furnish to the person to whose account such credit is given or to
whom such payment is made or the cheque or warrant is
issued, a certificate to the effect that tax has been deducted and specifying
the amount so deducted, the rate at which the tax has been deducted, and such
other particulars as may be prescribed.]
40[R182] [Tax-deduction account number.
203A.
(1) Every person deducting tax in
accordance with the provisions of sections 192 to 194, section 194A, section
194B, section 194BB, section 194C, section 194D 37[R183] [,
section 194E] 38[R184] [, section
195 and section 196A], if he has not been allotted any tax-deduction account
number, shall within such time as may be prescribed, apply to the 41[R185] [Assessing]
Officer for the allotment of a tax-deduction account number.
(2) Where a tax-deduction account number
has been allotted to a person, such person shall quote such number,—
(a) in all challans for the payment of any sum in accordance with the
provisions of section 200;
(b) in all
certificates issued in accordance with the provisions of section 203;
(c) in all the
returns delivered in accordance with the provisions of sections 206, 206A and
206B to any income-tax authority; and
(d) in all other
documents pertaining to such transactions as may be prescribed in the interests
of revenue.]
Meaning of
“person responsible for paying”.
204. For the purposes of 42[R186] [sections
192 to 194, section 194A 43[R187] [,
section 194B]44[R188] [,
section 194BB] 43[R189] [,
section 194C]] 45[R190] [,
section 194D] 46[R191] [,
section 194E], sections 195 to 203 and 47[R192] section
285, the expression “persons responsible for paying” means—
(i) in the
case of payments of income chargeable under the head “Salaries”, other than
payments by the Central Government or the Government of a State, the employer
himself or, if the employer is a company, the company itself, including the
principal officer thereof;
(ii) in the case of payments of income
chargeable under the head “Interest on securities”, other than payments made by
or on behalf of the Central Government or the Government of a State, the local
authority, corporation or company, including the principal officer thereof;
48[R193] [(iia) in the case of any sum payable to a non-resident
Indian, being any sum representing consideration for the transfer by him of any
foreign exchange asset, which is not a short-term capital asset, the authorised dealer responsible for remitting such sum to the
non-resident Indian or for crediting such sum to his Non-resident (External)
Account maintained in accordance with the Foreign Exchange Regulation Act, 1973
(46 of 1973) and any rules made there under;]
(iii) 49[R194] [in the
case of credit, or, as the case may be, payment] of any other sum chargeable
under the provisions of this Act, the payer himself, or, if the payer is a
company, the company itself including the principal officer thereof.
50[R195] [Explanation:
For the purposes of this section,—
(a) “Non-resident Indian” and “foreign
exchange asset” shall have the meanings assigned to them in Chapter XII-A;
(b) “authorised
dealer” shall have the meaning assigned to it in clause (b) of section 2 of the
Foreign Exchange Regulation Act, 1973 (46 of 1973).]
Bar against direct demand on assessee.
205. Where tax is deductible at the source under
51[R196] [sections
192 to 194, section 194A 52[R197] [,
section 194B] 53[R198] [,
section 194BB] 52[R199] [,
section 194C] 54[R200] [,
section 194D] 55[R201] [,
section 194E], 56[R202] [section
195 and section 196A]], the assessee shall not be
called upon to pay the tax himself to the extent to which tax has been deducted
from that income.
57[R203] [Persons deducting tax to furnish prescribed returns.
206. The prescribed person 58[R204] in the
case of every office of Government, the principal officer in the case of every
company, the prescribed person58[R205] in the
case of every local authority or other public body or association, every
private employer and every other person responsible for deducting tax under the
foregoing provisions of this Chapter shall prepare, within the prescribed
time after the end of each financial year, and deliver or cause to be delivered
to the prescribed income-tax authority59[R206] , such
returns60[R207] in
such from and verified in such manner and setting forth such particulars as
may be prescribed.]
61[R208] [Person paying interest to residents without deduction of tax,
to furnish prescribed return.
206A. 62[R209] Any
person responsible for paying any income referred to in section 194A shall
prepare, and within thirty days from the 31st day of March in each year,
deliver or cause to be delivered to the 63[R210] [Assessing]
Officer in the prescribed form and verified in the prescribed manner a return
in writing showing—
(a) The name and address of every person
who has furnished to him an affidavit or a statement under the proviso to
sub-section (1) of section 194A;
(b) the amount of the income credited or
paid during the financial year to each such person and the time or times at
which the same was credited or paid, as the case may be; and
(c) Such other particulars as may be
prescribed.]
64[R211] [Person paying dividend to
certain residents without deduction of tax to furnish prescribed return.
206B. 65[R212] Any
person responsible for paying any dividend referred to in section 194 shall
prepare, and within thirty days from the 31st day of March in each year,
deliver or cause to be delivered to the 63[R213] [Assessing]
Officer in the prescribed form and verified in the prescribed manner, a return
in writing showing—
(a) The name and address of every person
who has furnished to him a statement under the first proviso to section 194;
(b) The amount of the dividend paid or
distributed during the financial year to each such person; and
(c) Such other particulars as may be
prescribed.]
66[R214] [BB.—Collection at source
Profits and gains from the
business of trading in alcoholic liquor, forest produce, scrap, etc.
67[R215] 206C.68[R216] (1)
Every person, being a seller referred to in section 44AC, shall, at the time of
debiting of the amount payable by the buyer referred to in that section to the
account of the buyer or at the time of receipt of such amount from the said
buyer in cash or by the issue of a cheque or draft or
by any other mode, whichever is earlier, collect from the buyer of any goods of
the nature specified in column (2) of the Table below, a sum equal to the
percentage, specified in the corresponding entry in column (3) of the said
Table, of such amount as income-tax on income comprised therein.
Table
|
S.No. |
Nature of
goods |
Percentage |
|
(1) |
(2) |
(3) |
|
(i) |
Alcoholic
liquor for human consumption (other than Indian-made foreign liquor) |
Fifteen per
cent |
|
(ii) |
Timber
obtained under a forest lease |
Fifteen per
cent |
|
(iii) |
Timber
obtained by any mode other than under a forest lease |
|
|
(iv) |
Any other
forest produce not being timber |
Fifteen per
cent: |
Provided
that where the Assessing Officer, on an application made by the buyer, gives a
certificate in the prescribed form that to the best of his belief any of the
goods referred to in the aforesaid Table are to be utilised
for the purposes of manufacturing, processing or producing articles or things
and not for trading purposes, the provisions of this sub-section shall not
apply so long as the certificate is in force.
(2) The power to recover tax by collection under
sub-section (1) shall be without prejudice to any other mode of recovery.
(3) Any person collecting any amount under
sub-section (1) shall be within seven days the amount so collected to the
credit of the Central Government or as the Board directs.
(4) Any amount collected in accordance with the
provisions of this section and paid under sub-section (3) shall be deemed as
payment of tax on behalf of the person from whom the amount has been collected
and credit shall be given to him for the amount so collected on the production
of the certificate furnished under sub-section (5) in the assessment made under
this Act for the assessment year for which such income is assessable.
70[R218] (5)
Every person collecting tax in accordance with the provisions of this section
shall within ten days from the date of debit or receipt of the amount furnish
to the buyer to whose account such amount is debited or from whom such payment
is received, a certificate to the effect that tax has been collected, and
specifying the sum so collected, the rate at which the tax has been collected
and such other particulars as may be prescribed.
71[R219] [(5A)
Every person collecting tax in accordance with the provisions of this section
shall prepare half yearly returns for the period ending on 30th September and
31st March in each financial year, and deliver or cause to be delivered to the
prescribed income-tax authority†[R220] such returns
in such form and verified in such manner and setting forth such particulars and
within such time as may be prescribed.*[R221] ]
(6) Any
person responsible for collecting the tax who fail to collect the tax in
accordance with the provisions of this section, shall, notwithstanding such
failure, be liable to pay the tax to the credit of the Central Government in
accordance with the provisions of sub-section (3).
(7)
Without prejudice to the provisions of sub-section (6), if the seller does not
collect the tax or after collecting the tax fails to pay it as required under
this section, he shall be liable to pay simple interest at the rate of two per
cent per month or part thereof on the amount of such tax from the date on which
such tax was collectible to the date on which the tax was actually paid.
(8)
Where the tax has not been paid as aforesaid, after it is collected, the amount
of the tax together with the amount of simple interest thereon referred to in
sub-section (7) shall be a charge upon all the assets of the seller.]
C.—Advance payment of tax
72[R222] [Liability for payment of advance tax.
207. Tax shall be payable in advance during any
financial year, in accordance with the provisions of sections 208 to 219 (both
inclusive), in respect of the total income of the assessee
which would be chargeable to tax for the assessment year immediately following
that financial year, such income being hereafter in this Chapter referred to as
“current income”.]
73[R223] [Conditions of liability to
pay advance tax.
208. Advance tax shall be payable during a
financial year in every case where the amount of such tax payable by the assessee during that year, as computed in accordance with
the provisions of this Chapter, is one thousand five hundred rupees or more.]
209. 74[R224] [(1) The amount of advance tax payable by
an assessee in the financial year shall, subject to
the provisions of sub-sections (2) and (3), be computed as follows, namely:—
(a) where the calculation is made by the assessee for the purposes of payment of advance tax under
sub-section (1) or sub-section (2) or sub-section (5) or sub-section (6) of
section 210, he shall first estimate his current income and income-tax thereon
shall be calculated at the rates in force in the financial year;
(b) where the calculation is made by the
Assessing Officer for the purpose of making an order under sub-section (3) of
section 210, the total income of the latest previous year in respect of which
the assessee has been assessed by way of regular
assessment or the total income returned by the assessee
in any return of income furnished by him for any subsequent previous year,
whichever is higher, shall be taken and income-tax thereon shall be calculated
at the rates in force in the financial year;
(c) where the calculation is made by the
Assessing Officer for the purpose of making an amended order under sub-section
(4) of section 210, the total income declared in the return furnished by the assessee for the later previous year, or, as the case may
be, the total income in respect of which the regular assessment, referred to in
that sub-section has been made, shall be taken and income-tax thereon shall be
calculated at the rates in force in the financial year;
(d) the income-tax calculated under clause
(a) or clause (b) or clause (c) shall, in each case, be reduced by the amount
of income-tax which would be deductible 75[R225] [or
collectible] at source during the said financial year under any provision of
this Act from any income (as computed before allowing any deductions
admissible under this Act) which has been taken into account in computing the
current income or, as the case may be, the total income aforesaid; and the
amount of income-tax as so reduced shall be the advance tax payable.]
76[R226] [(2) Where the Finance Act of the relevant year
provides that, in the case of any class of assessees, net agricultural income
(as defined in that Act) shall be taken into account for the purposes of computing
advance tax, then, the net agricultural income to be taken into account in the
case of any assessee falling in that class, shall be—
(a) in cases 77[R227] [where
the Assessing Officer makes an order under sub-section (3) or sub-section (4)
of section 210],—
(i) if the
total income of the latest previous year in respect of which the assessee has been assessed by way of regular assessment
forms the basis of computation of advance tax payable by him, the net
agricultural income which has been taken into account for the purposes of
charging income-tax for the assessment year relevant to that previous year; or
78[R228] [(ii) if the total income declared by the assessee for the later previous year referred to in
sub-section (4) of section 210 forms the basis of computation of advance tax,
the net agricultural income as returned by the assessee
in the return of income for the assessment year relevant to such later previous
year;]
79[R229] [(b) in
cases where the advance tax is paid by the assessee
on the basis of his estimate of his current income under sub-section (1) or
sub-section (2) or sub-section (5) or sub-section (6) of section 210, the net
agricultural income, as estimated by him, of the period which would be the
previous year for the immediately following assessment year.]
(3) Where the Finance Act of the relevant
year specifies any separate rate or rates for the purposes of computing advance
tax in the case of every Hindu undivided family which has at least one member
whose total income of the previous year exceeds the maximum amount not
chargeable to income-tax in his case, then, the 80[R230] [Assessing]
Officer shall, for making an order under 81[R231] [sub-section
(3) or sub-section (4) of] section 210 in the case of any such Hindu undivided
family, compute (subject to the provisions of section 164) the advance tax at
such rate or rates—
(a) in a case where the total income of the
latest previous year in respect of which the Hindu undivided family has been
assessed by way of regular assessment forms the basis of computation of
advance tax, if the total income of any member of the family for the assessment
year relevant to such latest previous year exceeds the maximum amount not
chargeable to income-tax in his case;
(b) in a case where the total income of the
previous year 82[R232] [in
respect of which a return of income is furnished by the Hindu Undivided family
under section 139 or in response to a notice under sub-section (1) of section
142] forms the basis of computation of advance tax, if the total income of any
member of the family for the assessment year relevant to such previous year
exceeds the maximum amount not chargeable to income-tax in his case.
Computation and payment of advance tax by the assessee.
83[R233] 209A.
[Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988. Original section was inserted by the Finance Act, 1978, w.e.f. 1-6-1978.]
84[R234] [Payment of advance tax by
the assessee of his own accord or in pursuance of
order of Assessing Officer.
210.(1) Every person who is liable to pay advance tax under
section 208(whether or not he has been previously assessed by way of regular
assessment) shall, of his own accord, pay, on or before each of the due dates
specified in section 211, the appropriate percentage, specified in that
section, of the advance tax on his current income, calculated in the manner
laid down in section 209.
(2) A
person who pays any instalment or instalments
of advance tax under sub-section (1), may increase or reduce the amount of
advance tax payable in the remaining instalment or instalments to accord with his estimate of his current
income and the advance tax payable thereon, and make payment of the said amount
in the remaining instalment or instalments
accordingly.
(3) In
the case of a person who has been already assessed by way of regular assessment
in respect of the total income or any previous year and who has not paid any
advance tax under sub-section (1), the Assessing Officer, if he is of opinion
that such person is liable to pay advance tax, may, at any time during the
financial year but not later than the last day of February, by order in
writing, require such person to pay advance tax calculated in the manner laid
down in section 209, and issue to such person a notice of demand under section
156 specifying the instalment or instalments
in which such tax is to be paid.
(4) If,
after the making of an order by the Assessing Officer under sub-section (3) and
at any time before the 1st day of March, a return of income is furnished by the
assessee under section 139 or in response to a notice
under sub-section (1) of section 142, or a regular assessment of the assessee is made in respect of a previous year later than
that referred to in sub-section (3), the Assessing Officer may make an amended
order and issue to such assessee a notice of demand
under section 156 requiring the assessee to pay, on
or before the due date or each of the due dates specified in section 211
falling after the date of the amended order, the appropriate percentage,
specified in section 211, of the advance tax computed on the basis of the total
income declared in such return or in respect of which the regular assessment
aforesaid has been made.
(5) A
person who is served with an order of the Assessing Officer under sub-section
(3) or an amended order under sub-section (4) may, if in his estimation the
advance tax payable on his current income would be less than the amount of the
advance tax specified in such order or amended order, send an intimation in the
prescribed form*[R235] to the
Assessing Officer to that effect and pay such advance tax as accords with his
estimate, calculated in the manner laid down in section 209, at the appropriate
percentage thereof specified in section 211, on or before the due date or each
of the due dates specified in section 211 falling after the date of such
intimation.
(6) A
person who is served with an order of the Assessing Officer under sub-section
(3) or amended order under sub-section (4) shall, if in his estimation the
advance tax payable on his current income would exceed the amount of advance
tax specified in such order or amended order or intimated by him under
sub-section (5), pay on or before the due date of the last instalment
specified in section 211, the appropriate part or, as the case may be, the
whole of such higher amount of advance tax as accords with his estimate,
calculated in the manner laid down in section 209.]
85[R236] [Instalments
of advance tax and due dates.
211.(1)
Advance tax on the current income, calculated in the manner laid down in
section 209 shall be payable by all the assessees who are liable to pay the
same in three instalments during each financial year,
the due date of, and the amount payable in, each such instalment
being as specified in the following Table :
TABLE
|
Due date of instalment |
Amount payable |
|
On or before
the 15th September |
Not less than
twenty per cent of such advance tax. |
|
On before the
15th December |
Not less than
fifty per cent of such advance tax, as reduced by the amount, if any, paid in
the earlier instalment. |
|
On or before
the 15th March |
The whole
amount of such advance tax as reduced by the amount or amounts, if any, paid
in the earlier instalment or instalments
: |
Provided that any amount paid by way of advance tax on or
before the 31st day of March shall also be treated as advance tax paid during
the financial year ending on that day for all the purposes of this Act.
(2) If the notice of demand issued under section
156 in pursuance of an order of the Assessing Officer under sub-section (3) or
sub-section (4) ) of section 210 is served after any of the due dates specified
in sub-section (1), the appropriate part or, as the case may be, the whole of
the amount of the advance tax specified in such notice shall be payable on or
before each of such of those dates as fall after the date of service of the
notice of demand.]
Estimate by assessee.
86[R237] 212.[Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.]
87[R238] 213.[Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.]
88[R239] Interest payable by Government.
89[R240] 214.(1)The
Central Government shall pay simple interest at 90[R241] [fifteen]
per cent per annum on the amount by which the aggregate sum of any instalments of advance tax paid during any financial year
in which they are payable under sections 207 to 213 exceeds the amount of the 91[R242] [assessed
tax] from the 1st day of April next following the said financial year to the
date of the regular assessment for the assessment year immediately following
the said financial year, and where any such instalment
is paid after the expiry of the financial year, during which it is payable by
reason of the provisions of section 213, interest as aforesaid shall also be
payable on that instalment from the date of its
payment to the date of regular assessment:
92[R243] [Provided
that in respect of any amount refunded on a provisional assessment under
section 141A, no interest shall be paid for any period after the date of such
provisional assessment.]
93[R244] [(1A)Where
as a result of an order under section 147 or section 154 or section 155 or
section 250 or section 254 or section 260 or section 262 or section 263 or
section 264 94[R245] [or an
order of the Settlement Commissioner under sub-section (4) of section 245D], the
amount on which interest was payable under sub-section (1) has been increased
or reduced, as the case may be, the interest shall be increased or reduced
accordingly, and in a case where the interest is reduced, the 95[R246] [Assessing]
Officer shall serve on the assessee, a notice of
demand in the prescribed form specifying the amount of the excess interest
payable and requiring him to pay such amount; and such notice of demand shall
be deemed to be a notice under section 156 and the provisions of this Act shall
apply accordingly.]
(2) On
any portion of such amount which is refunded under this Chapter, interest shall
be payable only up to the date on which the refund was made.
96[R247] [(3) This section and sections 215, 216 and 217
shall not apply in respect of any assessment for the assessment year commencing
on the 1st day of April, 1989 or any subsequent assessment year and in the
application of the said sections to the assessment for any earlier assessment
year, references therein [except in sub-section (1A) and sub-section (3) of
section 215] to the other provisions of this Act shall be construed as
references to those provisions as for the time being in force and applicable to
the relevant assessment year.]
97[R248] [Explanation
1: In this section, “assessed tax” shall have the same meaning as in
sub-section (5) of section 215.
Explanation 2 : Where, in relation to an assessment year,
an assessment is made for the first time under section 147, the assessment so
made shall be regarded as a regular assessment for the purposes of this
section.]
Interest payable by assessee.
98[R249] 215. 99[R250] [1[R251] (1)
Where, in any financial year, an assessee has paid 2[R252] [advance
tax under section 209A or section 212 on the basis of his own estimate (including
revised estimate)], and the advance tax so paid is less than seventy-five per
cent of the assessed tax, simple interest at the rate of 3[R253] [fifteen]
per cent per annum from the 1st day of April next following the said financial
year up to the date of the regular assessment shall be payable by the assessee upon the amount by which the advance tax so paid
falls short of the assessed tax:]
4[R254] [Provided
that in the case of an assessee, being a company, the
provisions of this sub-section shall have effect as if for the words
“seventy-five per cent”, the words “eighty-three and one-third per cent” has
been substituted.]
5[R255] [(2) Where before the date of completion of a
regular assessment, tax is paid by the assessee
under section 140A or otherwise,—
(i) interest shall be calculated in accordance with the
foregoing provisions up to the date on which the tax is so paid; and
(ii) thereafter,
interest shall be calculated at the rate aforesaid on the amount by which the
tax as so paid (in so far as it relates to income subject to advance tax) falls
short of the assessed tax.]
6[R256] [(3) Where as a result of an order under
section 147 or section 154 or section 155 or section 250 or section 254 or
section 260 or section 262 or section 263 or section 264 7[R257] [or an
order of the Settlement Commission under sub-section (4) of section 245D], the
amount on which interest was payable under sub-section (1) has been increased
or reduced, as the case may be, the interest shall be increased or reduced
accordingly, and—
(i) in a case
where the interest is increased, the 8[R258] [Assessing]
Officer shall serve on the assessee, a notice of
demand in the prescribed form specifying the sum payable, and such notice of
demand shall be deemed to be a notice under section 156 and the provisions of
this Act shall apply accordingly;
(ii) in a case where
the interest is reduced, the excess interest paid, if any, shall be refunded.]
(4) In such cases and under such
circumstances as may be prescribed9[R259] , the 8[R260] [Assessing]
Officer may reduce or waive the interest payable by the assessee under this section.
10[R261] [(5) In
this section and sections 217 and 273, “assessed tax” means the tax determined
on the basis of the regular assessment (reduced by the amount of tax deductible
in accordance with the provisions of sections 192 to 194, section 194A 11[R262] [,section
194C] 12[R263] [,section
194D] 13[R264] [,
section 195 and section 196A)] so far as such tax relates to income subject to advance
tax and so far as it is not due to variations in the rates of tax made by the
Finance Act enacted for the year for which the regular assessment is made.]
14[R265] [(6)
Where, in relation to an assessment year, an assessment is made for the first
time under section 147, the assessment so made shall be regarded as a regular
assessment for the purposes of this section and sections 216, 217 and 273.]
15[R266] Interest payable by assessee in case of under-estimate, etc.
16[R267] 216.Where,
on making the regular assessment, the 17[R268] [Assessing]
Officer finds that any assessee has—
18[R269] [(a)
under 19[R270] [section
209A or section 212] under-estimated the advance tax payable by him and
thereby reduced the amount payable in either of the first two instalments; or]
(b) under section
213 wrongly deferred the payment of advance tax on a part of his income;he may direct that the assessee
shall pay simple interest at 20[R271] [fifteen]
per cent per annum—
(i) in the case
referred to in clause (a), for the period during which the payment was
deficient, on the difference between the amount paid in each such instalment and the amount which should have been paid,
having regard to the aggregate advance tax actually paid during the year; and
(ii) in the case
referred to in clause (b), for the period during which the payment of advance
tax was so deferred.
Explanation.—For the purposes of this section, any instalment due before the expiry of six months from the
commencement of the previous year in respect of which it is to be paid shall be
deemed to have become due fifteen days after the expiry of the said six months.
Interest payable by assessee when no estimate made.
21[R272] 217.22[R273] [(1)
Where, on making the regular assessment, 23[R274] [the 24[R275] [Assessing]
Officer finds—
(a) that any such person as is referred to
in clause (a) of sub-section (1) of section 209A has not sent the statement referred
to in that clause or the estimate in lieu of such statement referred to in
sub-section (2) of that section; or
(b) that any such person as is referred to
in clause (b) of sub-section (1) of section 209A has not sent the estimate
referred to in that clause,]simple interest at the rate of 25[R276] [fifteen]
per cent per annum from the 1st day of April next following the financial year
in which the advance tax was payable in accordance with the said 26[R277] [sub-section
(1) or sub-section (2)] up to the date of the regular assessment shall be payable by the assessee upon the
amount equal to the assessed tax as defined in sub-section (5) of section 215.]
27-28[R278] [(1A) Where, on making the regular
assessment, the 29[R279] [Assessing]
Officer finds that 30[R280] [any
person who is required to send an estimate under sub-section (4) of section
209A or] any such person as is referred to in sub-section (3A) of section 212
has not sent the estimate referred to therein, simple interest at the rate of 31[R281] [fifteen]
per cent per annum from the 1st day of April next following the financial year
in which the advance tax was payable in accordance with the said 32[R282] [sub-section
(4) or, as the case may be, sub-section (3A)] up to the date of the regular
assessment shall be payable by the assessee upon the amount
by which the advance tax paid by him falls short of the assessed tax as defined
in sub-section (5) of section 215.]
*[R283] (2) The provisions of sub-sections (2),
(3), and (4) of section 215 shall apply to interest payable under this section
as they apply to interest payable under that section.
When assessee deemed to be in default.
218. 33[R284] [If any
assessee does not pay on the date specified in
sub-section (1) of section 211, any instalment of the
advance tax that he is required to pay by an order of the Assessing Officer
under sub-section (3) or sub-section (4) of section 210 and does not, on or
before the date on which any such instalment as is
not paid becomes due, send to the Assessing Officer an intimation under
sub-section (5) of section 210 or does not pay on the basis of his estimate of
his current income the advance tax payable by him under sub-section (6) of
section 210, he shall be deemed to be an assessee in
default in respect of such instalment or instalments.]
Credit for advance tax.
219. Any sum, other than a penalty or interest,
paid by or recovered from an assessee as advance tax
in pursuance of this Chapter shall be treated as payment of tax in respect of
the income of the period which would be the previous year for an assessment for
the assessments year next following the financial year in which it was payable,
and credit there for shall be given to the assessee
in the regular assessment:
D.—Collection and recovery
When tax payable and when assessee deemed in default.
35[R286] 220.(1) Any amount, otherwise than by way of
advance tax, specified as payable in a notice of demand under section 156 shall
be paid within 36[R287] [thirty]
days of the service of the notice at the place and to the person mentioned in
the notice:
Provided that, where the 37[R288] [Assessing]
Officer has any reason to believe that it will be detrimental to revenue if the
full period of 36[R289] [thirty]
days aforesaid is allowed, he may, with the previous approval of the 38[R290] [Deputy]
Commissioner, direct that the sum specified in the notice of demand shall be
paid within such period being a period less than the period of36[thirty]
days aforesaid, as may be specified by him in the notice of demand.
39[R291] (2) If the amount specified in any notice of
demand under section 156 is not paid within the period limited under sub-section
(1), the assessee shall be liable to pay simple
interest at 40[R292] [one
and one-half per cent for every month or part of a month comprised in the
period commencing from the day immediately following the end of the period
mentioned in sub-section (1) and ending with the day on which the amount is
paid:]
41[R293] [Provided
that, where as a result of an order under section 154, or section 155, or
section 250, or section 254, or section 260, or section 262, or section 264 42[R294] [or an
order of the Settlement Commissioner under sub-section (4) of section 245D],
the amount on which interest was payable under this section had been reduced,
the interest shall be reduced accordingly and the excess interest paid, if any,
shall be refunded:]
42[R295] [Provided
further that in respect of any period commencing on or before the 31st day of
March, 1989 and ending after that date, such interest shall, in respect of so much
of such period as falls after that date, be calculated at the rate of one and
one-half per cent, for every month or part of a month.]
43[R296] [(2A)notwithstanding anything contained in sub-section (2), 44[R297] [the 45[R298] [Chief
Commissioner or Commissioner] may] reduce or waive the amount of interest 46[R299] [paid
or] payable by an assessee under the said sub-section
if 47[R300] [he is
satisfied] that—
(i) Payment of
such amount 46[R301] [has
caused or] would cause genuine hardship to the assessee;
(ii) Default in the payment of the amount on
which interest 46[R302] [has
been paid or] was payable under the said sub-section was due to circumstances
beyond the control of the assessee; and
(iii) the assessee has co-operated in any inquiry relating to the
assessment or any proceeding for the recovery of any amount due from him.]
(3) Without prejudice to the provisions
contained in sub-section (2), on an application made by the assessee
before the expiry of the due date under sub-section (1), the 48[R303] [Assessing]
Officer may extend the time for payment or allow payment by instalments,
subject to such conditions as he may think fit to impose in the circumstances
of the case.
(4) If the amount is not paid within the
time limited under sub-section (1) or extended under sub-section (3), as the
case may be, at the place and to the person mentioned in the said notice the assessee shall be deemed to be in default.
(5) If, in a case where payment by instalments is allowed under sub-section (3), the assessee commits default in paying any one of the instalments within the time fixed under that sub-section,
the assessee shall be deemed to be in default as to
the whole of the amount then outstanding, and the other instalment
or instalments shall be deemed to have been due on
the same date as the instalment actually in default.
(6) Where an assessee
has presented an appeal under section 246 the 48[R304] [Assessing]
Officer may, in his discretion, and subject to such conditions as he may think
fit to impose in the circumstances of the case, treat the assessee
as not being in default in respect of the amount in dispute in the appeal, even
though the time for payment has expired, as long as such appeal remains undisposed of.
(7) Where an assessee
has been assessed in respect of income arising outside India in a country the
laws of which prohibit or restrict the remittance of money to India, the 48[R305] [Assessing]
Officer shall not treat the assessee as in default in
respect of that part of the tax which is due in respect of that amount of his income
which, by reason of such prohibition or restriction, cannot be brought into
India, and shall continue to treat the assessee as
not in default in respect of such part of the tax until the prohibition or
restriction is removed.
Explanation : For the purposes of this section, income
shall be deemed to have been brought into India if it has been utilised or could have been utilised
for the purposes of any expenditure actually incurred by the assessee outside India or if the income, whether capitalised or not, has been brought into India in any
form.
Penalty payable when tax in default.
49[R306] 221. 50[R307] [(1)
When an assessee is in default or is deemed to be in
default in making a payment of tax, he shall in addition to the amount of the
arrears and the amount of interest payable under sub-section (2) of section
220, be liable by way of penalty, to pay such amount as the 51[R308] [Assessing]
Officer may direct, and in the case of a continuing default, such further
amount or amounts as the 51[R309] [Assessing]
Officer may, from time to time, direct, so, however, that the total amount of
penalty does not exceed the amount of tax in arrears:
Provided that before levying any such penalty, the assessee shall be given a reasonable opportunity of being
heard:
52[R310] [Provided
further that where the assessee proves to the satisfaction
of the 51[R311] [Assessing]
Officer that the default was for goods and sufficient reasons, no
penalty shall be levied under this section.]
53-54[R312] [Explanation:
For the removal of doubt, it is hereby declared that an assessee
shall not cease to be liable to any penalty under this sub-section merely by
reason of the fact that before the levy of such penalty he has paid the tax.]
(2)
Where as a result of any final order the amount of tax, with respect to the
default in the payment of which the penalty was levied, has been wholly
reduced, the penalty levied shall be cancelled and the amount of penalty paid
shall be refunded.
Certificate to Tax Recovery Officer.
222. 55[R313] [(1) When an assessee
is in default or is deemed to be in default in making a payment of tax, the Tax
Recovery Officer may draw up under his signature a statement in the prescribed
form specifying the amount of arrears due from the assessee
(such statement being hereafter in this Chapter and in the Second Schedule
referred to as “certificate”) and shall proceed to recover from such assessee the amount specified in the certificate by one or
more of the modes mentioned below, in accordance with the rules laid down in
the Second Schedule—]
(a)
attachment and sale of the assessee’s movable
property;
(b) attachment and
sale of the assessee’s immovable property;
(c) arrest of the assessee and his detention in prison;
(d) appointing a
receiver for the management of the assessee’s movable
and immovable properties.
56[R314] [Explanation
: For the purposes of this sub-section, the assessee’s
movable or immovable property shall include any property which has been
transferred, directly or indirectly on or after the 1st day of June, 1973, by
the assessee to his spouse or minor child or son’s
wife or son’s minor child, otherwise than for adequate consideration, and which
is held by, or stands in the name of, any of the persons aforesaid; and so far
as the movable or immovable property so transferred to his minor child or his
son’s minor child is concerned, it shall, even after the date of attainment of
majority by such minor child or son’s minor child, as the case may be, continue
to be included in the assessee’s movable or immovable
property for recovering any arrears due from the assessee
in respect of any period prior to such date.]
57[R315] [(2)
The Tax Recovery Officer may take action under sub-section (1), notwithstanding
that proceedings for recovery of the arrears by any other mode have been
taken.]
58[R316] [Tax Recovery Officer by whom recovery is to be effected.
223.
(1) The Tax Recovery Officer
competent to take action under section 222 shall be—
(a) the Tax Recovery Officer within whose
jurisdiction the assessee carries on his business or
profession or within whose jurisdiction the principal place of his business or
profession is situate, or
(b) the Tax Recovery Officer within whose
jurisdiction the assessee resides or any movable or
immovable property of the assessee is situate,the jurisdiction for this
purpose being the jurisdiction assigned to the Tax Recovery Officer under the
orders or directions issued by the Board, or by the Chief Commissioner or
Commissioner who is authorised in this behalf by the
Board in pursuance of section 120.
(2) Where an assessee
has property within the jurisdiction of more than one Tax Recovery Officer and
the Tax Recovery Officer by whom the certificate is drawn up—
(a) is not able
to recover the entire amount by sale of the property, movable or immovable, within
his jurisdiction, or
(b) is of the opinion that, for the purpose
of expediting or securing the recovery of the whole or any part of the amount
under this Chapter, it is necessary so to do,he may
send the certificate or, where only a part of the amount is to be recovered, a
copy of the certificate certified in the prescribed manner and specifying the
amount to be recovered to a Tax Recovery Officer within whose jurisdiction the assessee resides or has property and, thereupon, that Tax
Recovery Officer shall also proceed to recover the amount under this Chapter as
if the certificate or copy thereof had been drawn up by him.]
59[R317] [Validity of certificate and cancellation or amendment thereof.
224. It shall not be open to the assessee to dispute the correctness of any certificate
drawn up by the Tax Recovery Officer on any ground whatsoever, but it shall be
lawful for the Tax Recovery Officer to cancel the certificate if, for any
reason, he thinks it necessary so to do, or to correct any clerical or
arithmetical mistake therein.]
60[R318] [Stay of proceedings in pursuance of certificate and amendment
or cancellation thereof.
225.
(1) It shall
be lawful for the Tax Recovery Officer to grant time for the payment of any tax
and when he does so, he shall stay the proceedings for the recovery of such tax
until the expiry of the time so granted.
(2) Where the order giving rise to a demand of
tax for which a certificate has been drawn up is modified in appeal or other
proceeding under this Act, and, as a consequence thereof, the demand is reduced
but the order is the subject-matter of further proceeding under this Act, the
Tax Recovery Officer shall stay the recovery of such part of the amount
specified in the certificate as pertains to the said reduction for the period
for which the appeal or other proceeding remains pending.
(3) Where a certificate has been drawn up
and subsequently the amount of the outstanding demand is reduced as a result of
an appeal or other proceeding under this Act, the Tax Recovery Officer shall,
when the order which was the subject-matter of such appeal or other proceeding
has become final and conclusive, amend the certificate, or cancel it, as the
case may be.]
226.61[R319] [(1) Where no certificate has been drawn
up under section 222, the Assessing Officer may recover the tax by any one or
more of the modes provided in this section.
(1A) Where a
certificate has been drawn up under section 222, the Tax Recovery Officer may,
without prejudice to the modes of recovery specified in that section, recover
the tax by any one or more of the modes provided in this section.]
(2) If any assessee
is in receipt of any income chargeable under the head “Salaries”, the 62[R320] [Assessing]
Officer 63[R321] [or Tax
Recovery Officer] may require any person paying the same to deduct from any
payment subsequent to the date of such requisition any arrears of tax due from
such assessee, and such person shall comply with any
such requisition and shall pay the sum so deducted to the credit of the Central
Government or as the Board directs:
Provided that any part of the salary exempt from
attachment in execution of a decree of a civil court under section 60 of the
Code of Civil Procedure, 1908 (5 of 1908), shall be exempt from any requisition
made under this sub-section.
(3) (i) The 62[R322] [Assessing]
Officer 63[R323] [or Tax
Recovery Officer] may, at any time or from time to time, by notice in writing
require any person from whom money is due or may become due to the assessee or any person who holds or may subsequently hold
money for or on account of the assessee to pay to the
62[R324] [Assessing]
Officer 63[R325] [or Tax
Recovery Officer] either forthwith upon the money becoming due or being held or
at or within the time specified in the notice (not being before the money
becomes due or is held) so much of the money as is sufficient to pay the amount
due by the assessee in respect of arrears or the
whole of the money when it is equal to or less than that amount.
(ii) A notice under this sub-section may be
issued to any person who holds or may subsequently hold any money for or on
account of the assessee jointly with any other person
and for the purposes of this sub-section, the shares of the joint holders in
such account shall be presumed, until the contrary is proved, to be equal.
(iii) A copy of the notice shall be forwarded
to the assessee at his last address known to the 64[R326] [Assessing]
Officer 65[R327] [or Tax
Recovery Officer], and in the case of a joint account to all the joint holders
at their last addresses known to the 64[R328] [Assessing]
Officer 65[R329] [or Tax
Recovery Officer]
(iv) Save as otherwise provided in this
sub-section, every person to whom a notice is issued under this sub-section
shall be bound to comply with such notice, and, in particular, where any such
notice is issued to a post office, banking company or an insurer, it shall not
be necessary for any pass book, deposit receipt, policy or any other document
to be produced for the purpose of any entry, endorsement or the like being made
before payment is made, notwithstanding any rule, practice or requirement to
the contrary.
(v) Any claim respecting any property in
relation to which a notice under this sub-section has been issued arising after
the date of the notice shall be void as against any demand contained in the
notice.
(vi) Where a person to whom a notice under
this sub-section is sent objects to it by a statement on oath that the sum
demanded or any part thereof is not due to the assessee
or that he does not hold any money for or on account of the assessee,
then nothing contained in this sub-section shall be deemed to require such
person to pay any such sum or part thereof, as the case may be, but if it is
discovered that such statement was false in any material particular, such
person shall be personally liable to the 64[R330] [Assessing]
Officer 65[R331] [or Tax
Recovery Officer] to the extent of his own liability to the assessee
on the date of the notice, or to the extent of the assessee’s
liability for any sum due under this Act, whichever is less.
(vii) The 64[R332] [Assessing]
Officer 65[R333] [or Tax
Recovery Officer] may, at any time or from time to time, amend or revoke any
notice issued under this sub-section or extend the time for making any payment
in pursuance of such notice.
(viii) The 64[R334] [Assessing]
Officer 65[R335] [or Tax
Recovery Officer] shall grant a receipt for any amount paid in compliance with
a notice issued under this sub-section, and the person so paying shall be fully
discharged from his liability to the assessee to the
extent of the amount so paid.
(ix) Any person discharging any liability to
the assessee after receipt of a notice under this
sub-section shall be personally liable to the 64[R336] [Assessing]
Officer 65[R337] [or Tax
Recovery Officer] to the extent of his own liability to the assessee
so discharged or to the extent of the assessee’s
liability for any sum due under this Act, whichever is less.
(x) If the person to whom a notice under
this sub-section is sent fails to make payment in pursuance thereof to the 64[R338] [Assessing]
Officer 65[R339] [or Tax
Recovery Officer], he shall be deemed to be an assessee
in default in respect of the amount specified in the notice and further
proceedings may be taken against him for the realisation
of the amount as if it were an arrear of tax due from him, in the manner
provided in sections 222 to 225 and the notice shall have the same effect as an
attachment of a debt by the Tax Recovery Officer in exercise of his powers
under section 222.
(4) The 66[R340] [Assessing]
Officer 67[R341] [or Tax
Recovery Officer] may apply to the court in whose custody there is money
belonging to the assessee for payment to him of the
entire amount of such money, or, if it is more than the tax due, an amount
sufficient to discharge the tax.
68[R342] [(5)
The 66[R343] [Assessing]
Officer 67[R344] [
or Tax Recovery Officer] may, if so authorised
by the 69[R345] [Chief
Commissioner or Commissioner] by general or special order, recover any arrears
of tax due from an assessee by distraint
and sale of his movable property in the manner laid down in the Third
Schedule.]
Recovery through State Government.
227. If the recovery of tax in any area has been
entrusted to a state government under clause (1) of article 258 of the constitution,
the state government may direct, with respect to that area or any part thereof,
that tax shall be recovered therein with and as an addition to any municipal
tax or local rate, by the same person and in the same manner as the municipal
tax or local rate is recovered.
Recovery of Indian Tax in
Pakistan and Pakistan tax in India.
70[R346] 228.[Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]
71[R347] [ecovery of tax in pursuance of
agreements with foreign countries.
228A.(1) Where an agreement is entered into by the
Central Government with the Government of any country outside India for
recovery of income-tax under this act and the corresponding law in force in
that country and the government of that country or any authority under that
Government which is specified in this behalf in such agreement sends to the
board a certificate for the recovery of any tax due under such corresponding
law from a person having any property in India, the board may forward such
certificate to any tax recovery officer within whose jurisdiction such property
is situated and thereupon such tax recovery officer shall—
(a) Proceed to recover the amount specified
in the certificate in the manner in which he would proceed to recover the
amount 72[R348] [specified
in a certificate drawn up by him under section 222]; and
(b) Remit any sum so recovered by him to the
Board after deducting his expenses in connection with the recovery proceedings.
73[R349] [(2) Where an assessee
is in default or is deemed to be in default in making a payment of tax, the Tax
Recovery Officer may, if the assessee has property in
a country outside India (being a country with which the Central Government has
entered into an agreement for the recovery of income-tax under this Act and the
corresponding law in force in that country) forward to the Board a certificate
drawn up by him under section 222 and the Board may take such action thereon as
it may deem appropriate having regard to the terms of the agreement with such
country.]
Recovery of penalties, fine,
interest and other sums.
229. Any sum imposed by way of interest, fine,
penalty, or any other sum payable under the provisions of this Act, shall be
recoverable in the manner provided in this Chapter for the recovery of arrears
of tax.
Tax clearance certificates.
74[R350] 230.75[R351] (1) Subject to such exceptions as the
Central Government may, by notification in the Official Gazette, specify in
this behalf, 76[R352] [no
person—
(a) who is not
domiciled in
(b) who is
domiciled in
But—
(i) intends to leave
(ii) intends to
proceed to another country on a work permit with the object of taking up any
employment or other occupation in that country; or
(iii) in respect of whom circumstances exist
which, in the opinion of an income-tax authority, render it necessary for him
to obtain a certificate under this section,shall
leave the territory of India] by land, sea or air unless he first obtains from
such authority77[R353] as may
be appointed by the Central Government in this behalf (hereinafter in this
section referred to as the “competent authority)”77[R354] a
certificate stating that he has no liabilities under this Act, the Excess
Profits Tax Act, 1940 (15 of 1940), the Business Profits Tax Act, 1947 (21 of
1947), the Indian Income-tax Act, 1922 (11 of 1922), the Wealth-tax Act, 1957
(27 of 1957), the Expenditure-tax Act, 1957 (29 of 1957) or the Gift-tax Act,
1958 (18 of 1958), or that satisfactory arrangements have been made for the
payment of all or any of such taxes which are or may become payable by that
person:
Provided that in the case of a person not domiciled in
India the competent authority may, if it is satisfied that such person intends
to return to India, issue an exemption certificate either in respect of a
single journey or in respect of all journeys to be undertaken by that person
within such period as may be specified in the certificate.
(2) It the owner or charterer
of any ship or aircraft carrying persons from any place in the territory of
India to any place outside India allows any person to whom sub-section (1)
applies to travel by such ship or aircraft without first satisfying himself
that such person is in possession of a certificate as required by that
sub-section, he shall be personally liable to pay the whole or any part of the
amount of tax, if any, payable by such person as the 78[R355] [Assessing]
Officer may, having regard to the circumstances of the case, determine.
(3) In respect of any sum payable by the owner
or charterer of any ship or aircraft under
sub-section (2), the owner or charterer, as the case
may be, shall be deemed to be an assessee in default
for such sum, and such sum shall be recoverable from him in the manner provided
in this Chapter as if it were an arrear of tax.
79[R356] (4) The
Board may make rules for regulating any matter necessary for, or incidental
to, the purpose of carrying out the provisions of this section.
Explanation : For the purposes
of this section, the expressions “owner” and “charterer”
include any representative, agent or employee empowered by the owner or charterer to allow persons to travel by the ship or
aircraft.
80[R357] [estrictions on registration of
transfers of immovable property in certain cases.
81[R358] 230A
(1) Notwithstanding anything
contained in any other law for the time being in force, where any document
required to be registered under the provisions of clause (a) to clause (e) of
sub-section (1) of section 17 of the Indian Registration Act, 1908 (16 of
1908), purports to transfer, assign, limit, or extinguish the right, title or
interest of any person to or in any property 82[R359] [***]
valued at more than 83[R360] [two lakhs] rupees, no registering officer appointed under that
Act shall register any such document, unless the 84[R361] [Assessing]
Officer certifies that—
(a) such person has either paid or made
satisfactory provisions for payment of all existing liabilities under this Act,
the Excess Profits Tax Act, 1940 (15 of 1940), the Business Profits Tax Act,
1947 (21 of 1947), the Indian Income-tax Act, 1922 (11 of 1922), the Wealth-tax
Act, 1957 (27 of 1957), the Expenditure-tax Act, 1957 (29 of 1957), 85[R362] [the
Gift-tax Act, 1958 (18 of 1958), the Super Profits Tax Act, 1963 (14 of 1963),
and the Companies (Profits) Surtax Act, 1964 (7 of 1964)], or
(b) the
registration of the document will not prejudicially affect the recovery of any
existing liability under any of the aforesaid Acts.
86[R363] (2) The application for the certificate
required under sub-section (1) shall be made by the person referred to in that
sub-section and shall be in such form and shall contain such particulars as
may be prescribed.
87[R364] [(3) The provisions of sub-section (1) shall
not apply in a case where the person referred to in that sub-section is any
such institution, association or body, or belongs to any 88[R365] such
class of institutions, associations or bodies, as the Board may, for reasons to
be recorded in writing, notify in this behalf in the Official Gazette.]
Period for commencing recovery proceedings.
89[R366] 231.[Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]
Recovery by suit or under
other law not affected.
232. The several modes of recovery specified in
this Chapter shall not affect in any way—
(a) any other law
for the time being in force relating to the recovery of debts due to
Government; or
(b) the right of the Government to institute
a suit for the recovery of the arrears due from the assessee;and it shall be lawful for the 90[R367] [Assessing]
Officer or the Government, as the case may be, to have recourse to any such law
or suit, notwithstanding that the tax due is being recovered from the assessee by any mode specified in this Chapter.
E.-Tax payable under provisional assessment
Recovery of tax payable under provisional assessment.
233. [Omitted by the Taxation Laws (Amendment)
Act, 1970, w.e.f. 1-4-1971.]
Tax paid by deduction or
advance payment.
91[R368] 234.[Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]
92[R369] [F.-Interest chargeable in
certain cases
92[R370] [Interest for defaults in furnishing return of income.
234A.
(1) Where the return of income for any
assessment year under sub-section (1) or sub-section (4) of section 139, or in
response to a notice under sub-section (1) of section 142, is furnished after
the due date, or is not furnished, the assessee shall
be liable to pay simple interest at the rate of two per cent for every month or
part of a month comprised in the period commencing on the date immediately
following the due date, and,—
(a)
where the return is furnished after the due date, ending on the date of
furnishing of the return; or
(b)
where no return has been furnished, ending on the date of completion of the
assessment under section 144,on the amount of 93[R371] [the
tax on the total income as determined under sub-section (1) of section 143 or
on regular assessment as reduced by the advance tax, if any, paid and any tax
deducted or collected at source].
Explanation 1 : In this section,
“due date” means the date specified in sub-section (1) of section 139 as
applicable in the case of the assessee.
94[R372] [Explanation
2 : In this sub-section, “tax on the total income as determined under
sub-section (1) of section 143” shall not include the additional income-tax,
if any, payable under section 143.]
Explanation 3 : Where, in relation to an assessment year,
an assessment is made for the first time under section 147, the assessment so
made shall be regarded as a regular assessment for the purposes of this
section.
95[R373] [Explanation
4 : In this sub-section, “tax on the total income as determined under
sub-section (1) of section 143 or on regular assessment” shall, for the
purposes of computing the interest payable under section 140A, be deemed to be
tax on total income as declared in the return.]
(2) The
interest payable under sub-section (1) shall be reduced by the interest, if
any, paid under section 140A towards the interest chargeable under this
section.
(3)
Where the return of income for any assessment year, required by a notice under
section 148 issued 95[R374] [after
the determination of income under sub-section (1) of section 143 or] after the
completion of an assessment under sub-section (3) of section 143 or section 144
or section 147, is furnished after the expiry of the time allowed under such
notice, or is not furnished, the assessee shall be
liable to pay simple interest at the rate of two per cent for every month or
part of a month comprised in the period commencing on the day immediately
following the expiry of the time allowed as aforesaid, and,—
(a)
Where the return is furnished after the expiry of the time aforesaid, ending on
the date of furnishing the return ; or
(b)
Where no return has been furnished ending on the date of completion or the
reassessment or recomputation under section 147,on the amount by which the tax on the total income
determined on the basis of such reassessment or recomputation
exceeds the tax on the total income determined 96[R375] [under sub-section
(1) of section 143 or] on the basis of the earlier assessment aforesaid.
(4)
Where as a result of an order under section 154 or section 155 or section 250
or section 254 or section 260 or section 262 or section 263 or section 264 or
an order of the Settlement Commission under sub-section (4) of section 245D,
the amount of tax on which interest was payable under sub-section (1) or
sub-section (3) of this section has been increased or reduced, as the case may
be, the interest shall be increased or reduced accordingly, and
(i) in a case
where the interest is increased, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form
specifying the sum payable, and such notice of demand shall be deemed to be a
notice under section 156 and the provisions of this Act shall apply
accordingly;
(ii) in a case where
the interest is reduced, the excess interest paid, if any, shall be refunded.
(5) The
provisions of this section shall apply in respect of assessments for the
assessment year commencing on the 1st day of April, 1989 and subsequent
assessment year.]
98[R377] [Interest for default in payment of advance tax.
234B.
(1) Subject to the other provisions of
this section, where, in any financial year, an assessee
who is liable to pay advance tax under section 208 has failed to pay such tax
or, where the advance tax paid by such assessee under
the provisions of section 210 is less than ninety per cent of the assessed tax,
the assessee shall be liable to pay simple interest
at the rate of two per cent for every month or part of a month comprised in the
period from the 1st day of April next following such financial year 99[R378] [to the
date of determination of total income under sub-section (1) of section 143 or
regular assessment], on an amount equal to the assessed tax or, as the case may
be, on the amount by which the advance tax paid as aforesaid falls short of the
assessed tax.
1[R379] [Explanation
1 : In this section, “assessed tax” means,—
(a) for the purposes of computing the
interest payable under section 140A, the tax on the total income as declared in
the return referred to in that section;
(b) in any other case, the tax on the total
income determined under sub-section (1) of section 143 or on regular assessment,as reduced by the
amount of tax deducted or collected at source in accordance with the provisions
of Chapter XVII on any income which is subject to such deduction or collection
and which is taken into account in computing such total income.]
Explanation 2 : Where, in relation to an assessment year,
an assessment is made for the first time under section 147, the assessment so
made shall be regarded as a regular assessment for the purposes of this
section.
2[R380] [Explanation
3 : In Explanation 1 and in sub-section (3), “tax on
the total income determined under sub-section (1) of section 143” shall not
include the additional income-tax, if any, payable under section 143.]
(2) Where,
before the date of 3[R381] [determination
of total income under sub-section (1) of section 143 or] completion of a
regular assessment, tax is paid by the assessee under
section 140A or otherwise,—
(i) interest
shall be calculated in accordance with the foregoing provisions of this section
up to the date on which the tax is so paid, and reduced by the interest, if
any, paid under section 140A towards the interest chargeable under this
section;
(ii) Thereafter, interest shall be calculated
at the rate aforesaid on the amount by which the tax so paid together with the
advance tax paid falls short of the assessed tax.
(3) Where,
as a result of an order of re-assessment or re-computation under section 147,
the amount on which interest was payable under sub-section (1) is increased, th assessee shall be liable to
pay simple interest at the rate of two per cent for every month or part of a
month comprised in the period commencing on the day following 4[R382] [the
date of determination of total income under sub-section (1) of section 143 or
regular assessment] referred to in sub-section (1) and ending on the date of
the re-assessment or re-computation under section 147, on the amount by which
the tax on the total income determined on the basis of the re-assessment or
re-computation exceeds the tax on the total income determined 3[R383] [under
sub-section (1) of section 143 or] on the basis of the regular assessment
aforesaid.
(4) Where,
as a result of an order under section 154 or section 155 or section 250 or
section 254 or section 260 or section 262 or section 263 or section 264 or an
order of the Settlement Commission under sub-section (4) or section 245D, the
amount on which interest was payable under sub-section (1) or sub-section (3)
has been increased or reduced, as the case may be, the interest shall be
increased or reduced accordingly, and—
(i) in a case
where the interest is increase, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form
specifying the sum payable and such notice of demand shall be deemed to be a
notice under section 156 and the provisions of this Act shall apply
accordingly;
(ii) In a case where the interest is reduced,
the excess interest paid, if any, shall be refunded.
(5) The
provisions of this section shall apply in respect of assessments for the
assessment year commencing on the 1st day of April, 1989 and subsequent
assessment years.]
6[R385] [Interest for deferment of advance tax.
234C.
(1) Where in any financial year, the
advance tax paid by the assessee on his current
income on or before the 15th day of September is less than twenty per cent of
the tax due on the returned income or the amount of such advance tax paid on or
before the 15th day of December is less than fifty per cent of the tax due on
the returned income, then, the assessee shall be
liable to pay simple interest at the rate of one and one-half per cent per
month of the shortfall from for a period of three months on the amount of the
shortfall from twenty per cent or, as the case may be, fifty per cent of the
tax due on the returned income:
7[R386] [Provided
that nothing contained in this sub-section shall apply to any shortfall in the
payment of the tax due on the returned income where such shortfall is on
account of under-estimate or failure to estimate—
(a) The amount of capital gains; or
(b) Income of the nature referred to in
sub-clause (ix) of clause (24) of section 2,and the assessee
has paid the whole of the amount of tax payable in respect of income referred
to in clause (a) or clause (b), as the case may be, had such income been a part
of the total income, as part of the instalment of
advance tax which is immediately due or where no such instalment
is so due, by the 31st day of March of the financial year:]
Explanation : In this section, “tax due on the returned
income” means the tax chargeable on the total income declared in the return of
income furnished by the assessee for the assessment
year commencing on the 1st day of April immediately following the financial
year in which the advance tax is paid, as reduced by 8[R387] [the
amount of tax deductible or collectible at source in accordance with the
provisions of Chapter XVII on any income which is subject to such deduction or
collection] and which is taken into account in computing such total income.
(2) The
provisions of this section shall apply in respect of assessments for the
assessment year commencing on the 1st day of April, 1989 and subsequent
assessment years.]
[R1]Inserted by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-6-1988.
[R2]See also Circular No. 306, dated 19-6-1981, Circular No. 232, dated 26-11-1977 and Circular No. 141, dated 23-7-1974.
[R3]“(1)” omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
[R4]Sub-section (2) omitted, ibid.
[R5]See also Letter [F. No. 12/71/65-IT(B)(Extract)], dated 5-3-1966, Circular No. 501, dated 20-1-1988, Circular No. 504, dated 8-2-1988, Circular No. 483, dated 4-3-1987, Circular No. 147, dated 28-10-1974, Letter [F. No. 237/4/75-A & PAC], dated 23-11-1976, Circular No. 90, dated 26-6-1972, Circular No. 272, dated 27-5-1980, Circular No. 285, dated 21-10-1980, Circular No. 38-D(LXII-1), dated 9-7-1951 and Circular No. 537, dated 12-7-1989.
[R6]See rules 32 and 37 and Form Nos. 21, 23 and 24.
[R7]“And super-tax” omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
[R8]“And average rate of super-tax respectively” omitted, ibid.
[R9]Substituted for “rates of tax in force” by the Finance Act, 1968, w.e.f. 1-4-1968.
[R10]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987. Original sub-section was omitted by the Finance Act, 1965, w.e.f. 1-4-1965. See rule 26A and Form No. 12B.
[R11]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987. See rule 21AA and Form No. 10E.
[R12]Substituted for “public sector undertaking” by the Finance Act, 1989, w.e.f 1-6-1989.
[R13]Inserted, ibid.
[R14]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987. See rule 26B and Form No. 12C.
[R15]Inserted, ibid. Earlier “or sub-section (2)” was omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
[R16]See rule 33 and Form No. 22.
[R17]Substituted for “income-tax and super-tax” by the Finance Act, 1965, w.e.f. 1-4-1965.
[R18]See rules 26 and 115.
[R19]Explanation omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
[R20]See rules 37 and 37A and Form Nos. 25 and 27.
[R21]See also Circular No. 2, dated 6-2-1969, Circular No. 2-P(XXXIV-4), dated 16-5-1966 and Circular No. 543, dated 31-8-1989.
[R22]Substituted for ‘chargeable under the head “Interest on securities” ’, by the Finance Act, 1988, w.e.f. 1-4-1989.
[R23]Substituted for “at the time of payment” by the Finance Act, 1989, w.e.f. 1-6-1989.
[R24]“And super-tax” omitted by the finance Act, 1965, w.e.f. 1-4-1965.
[R25]Substituted by the Finance (No. 2) Act, 1965, w.e.f. 11-9-1965. Original proviso was inserted by the Taxation Laws (Amendment) Act, 1962, w.e.f. 13-12-1962.
[R26]Inserted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1965, w.e.f. 4-12-1965.
[R27]Inserted by the Finance Act, 1978, w.e.f. 1-4-1978.
[R28]Omitted by the Finance
Act; 1988, w.e.f. 1-4-1989. Prior to its omission,
clause (ii) stood as under:
“(ii) Any interest payable on National Savings Certificates (First Issue); or”
[R29]Inserted by the Finance Act, 1970, w.e.f. 1-4-1970.
[R30]Substituted for the
following clause (iib), which was inserted by
the Finance Act, 1970, w.e.f. 1-4-1970, by the
Finance Act, 1986, w.e.f. 1-6-1986:
“(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”
[R32]Explanation omitted by the Finance
Act, 1987, w.e.f. 1-4-1987. Omitted Explanation,
which was inserted, while substituting clause (iib)
by the Finance Act, 1986, w.e.f. 1-4-1986, read as
under:
‘Explanation : For the purposes of this clause, “public sector company” means any corporation established by or under any Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956); or’
[R33]Inserted by the Finance Act, 1982, w.e.f. 1-6-1982.
[R34]See Notification No. SO 744, dated 5-3-1987
[R35]Inserted by the Finance Act, 1966, w.e.f. 1-4-1966.
[R36]Inserted by the Finance Act, 1984, w.e.f. 1-6-1984.
[R37]Substituted for “one thousand rupees” by the Finance Act, 1989, w.e.f. 1-6-1989.
[R38]Inserted, ibid. Original Explanation, which was inserted by the Finance Act, 1965, w.e.f. 1-4-1965, omitted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
[R39]See also Circular No. P(XXI-16), dated 8-1-1965 and Circular No. 3P(XXI-19), dated 1-5-1966.
[R40]See rules 27, 30(1), 30A and 37 and Form Nos. 15B and 26.
[R41]“And super-tax” omitted
by the Finance Act, 1965, w.e.f. 1-4-1965.
[R42]Substituted by the Finance Act, 1984, w.e.f. 1-6-1984. Original proviso was inserted by the Finance (No. 2) Act, 1977, w.e.f. 1-10-1977. See rule 28A and Form No. 14B.
[R43]Substituted for “one thousand rupees” by the Finance Act, 1987, w.e.f. 1-6-1987.
[R44]See rule 28(3) and Form No. 14.
[R45]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 1-10-1977.
[R46]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R47]See rule 29 and Form No. 15.
[R48]“or the total word income” omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
[R49]Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
[R50]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-ITA(A-II)], dated 23-9-1968, Letter [F. No. 12/113/68-IT(A-II)], dated 28-10-1968 and Circular No. 526, dated 5-12-1988.
[R51]See rule 37 and Form No. 26A.
[R52]Substituted for ‘chargeable under the head “Interest on securities”’ by the Finance Act, 1988, w.e.f. 1-4-1989.
[R53]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.
[R54]See rule 29A and Form No. 15A.
[R55]Substituted for “be signed in the presence of a Gazette Officer of the Central or a State Government and bear an attestation by such officer to the effect that the person who has singed the statement is known to him” by the Finance Act, 1968, w.e.f. 1-4-1968.
[R56]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) 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.’
[R57]Substituted for “one thousand rupees” by the Finance Act, 1987, w.e.f. 1-6-1987.
[R59]Inserted by the Finance Act, 1968, w.e.f. 1-4-1968.
[R60]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.
[R61]Inserted by the Finance (No. 2) Act, 1971, w.e.f. 1-4-1971.
[R62]Inserted by the Finance Act, 1970, w.e.f. 1-4-1970.
[R64]Inserted by the Finance Act, 1975, w.e.f. 1-4-1975.
[R65]Inserted by the Finance Act, 1975, w.e.f. 1-4-1975.
[R66]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R67]See also Circular No. 264, dated 11-2-1980 and Circular No. 536, dated 6-7-1989.
[R68]See rule 37 and Form No. 26B.
[R69]Substituted for “one thousand rupees” by the Finance Act, 1986, w.e.f. 1-6-1986.
[R70]Inserted by the Finance Act, 1978, w.e.f. 1-4-1978.
[R71]See also Circular No. 536, dated 6-7-1989.
[R72]See rule 37 and Form No. 26BB.
[R73]Substituted for “two thousand five hundred rupees” by the Finance Act, 1986, w.e.f. 1-6-1986.
[R74]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R75]See also Circular No. 86, dated 29-5-1972, Circular No. 93, dated 26-9-1972, Circular No. 95, dated 15-11-1972, Circular No. 433, dated 25-9-1985. Circular No. 487, dated 8-6-1987, Circular No. 502, dated 27-1-1988, Circular No. 539, dated 13-7-1989 and Circular No. 558, dated 28-3-1990.
[R76]See rule 37 and Form No. 26C.
[R77]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R78]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R79]Inserted by the Finance Act, 1988, w.e.f. 1-6-1988.
[R80]Substituted for “five” by the Finance Act, 1982, w.e.f. 1-6-1982.
[R81]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R82]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R83]See rule 28(2) and Form No. 13C.
[R84]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R85]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R86]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R87]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R88]See also Circular No. 120, dated 8-10-1973 and Circular No. 540, dated 24-7-1989.
[R89]See rule 37 and Form Nos. 26D and 26E.
[R90]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.
[R91]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-11-1989. Earlier section 194E, as inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, was omitted by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from the same date.
[R92]See also Circular No. 370, dated 3-10-1983, Letter [F.No. 391/3/78-FTD], dated 9-7-1984, Circular No. 152, dated 27-11-1974, Letter [F.No. 12/29/6-IT(B)], dated 1-6-1965, Circular No. 43, dated 20-6-1970 and Circular No. 20(II-4), dated 3-8-1961.
[R93]Substituted for the
following sub-section (1), as amended by the Finance Act, 1965, w.e.f. 1-4-1965 and by the Finance Act, 1975, w.e.f. 1-4-1975, by the Finance Act, 1987, w.e.f. 1-6-1987:
‘(1) Any person responsible for paying to a
non-resident, not being a company, or to a company which is neither an Indian
company nor a company which has made the prescribed arrangements for the
declaration and payment of dividends within India, any interest, not being
“Interest on securities”, or any other sum, not being dividends, chargeable
under the provisions of this Act, shall, at the time of payment, unless he is
himself liable to pay any income-tax thereon as an agent, deduct income-tax
thereon at the rates in force:
Provided that nothing in this sub-section shall apply to
any payment made in the course of transactions in respect of which a person
responsible for the payments is deemed under the proviso to sub-section (1) of
section 163 not to be an agent of the payee:
Provided further that the deduction of income-tax from any sum, being income chargeable under the head “Capital gains” relating to capital assets other than short-term capital assets, paid to a company which is neither an Indian company nor a company which has made the prescribed arrangements for the declaration and payment of dividends within India, shall be of an amount equal to the amount of income-tax on such sum calculated in accordance with the provisions of clause (i) of section 115.’
[R94]See rules, 26, 27 and 37A and Form No. 27.
[R95]Inserted by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-6-1987.
[R96]“Interest including” omitted by the Finance Act, 1976, w.e.f. 1-6-1976.
[R97]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R98]Substituted for “in the prescribed manner” by the Finance Act, 1988, with retrospective effect from 1-3-1988.The very expression “in the prescribed manner” was earlier substituted for “by general or special order” by the Finance Act, 1987, w.e.f.1-6-1987.
[R99]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.
[R100]Inserted by the Finance Act, 1970, w.e.f. 1-4-1970.
[R101]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R102]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R103]See rule 29B and Form Nos. 15C to 15E.
[R104]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.
[R105]Substituted for the
following section 196, which was also earlier substituted by the Finance (No.
2) Act, 1967, w.e.f. 1-4-1967, by the Direct Tax Laws
(Amendment) Act, 1987, w.e.f. 1-4-1988:
“Notwithstanding anything contained in the
foregoing provisions of this Chapter, no deduction of tax shall be made by any
person from any sums payable to—
(i) the
Government, or
(ii) the Reserve Bank of
(iii) a corporation established by or
under a Central Act which is, under any law for the time being in force, exempt
from income-tax on its income,
where such sum is payable to it by way of interest or dividend in respect of any securities or shares owned by it or in which it has full beneficial interest, or any other income accruing or arising to it.”
[R106]Substituted by the Direct
Tax Laws (Amendment) Act, 1989, w.e.f. 15-3-1989.
Prior to its substitution it read as under:
“196A. Tax not to be deducted from any sums payable to unit-holders of Mutual Fund.—Notwithstanding anything contained in the foregoing provisions of this Chapter, no deduction of tax shall be made by a public sector bank or a public financial institution referred to in clause (23D) of section 10 from any sums payable to unit-holders of a Mutual Fund specified under that clause.”
[R107]See rule 28(1) and Form No. 13. See also Letter [F. No. 1(54)-63/TPL], dated 18-5-1963 and Letter [F. No. 20/23/67-IT (A-I)], dated 28-7-1967.
[R108]Substituted for “Where, in the case of any income of any person other than a company” by the Finance Act, 1987, w.e.f. 1-6-1987.
[R109]Substituted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
[R110]See rule 28AA and Form No. 15AA.
[R111]194B” omitted by the Finance Act, 1986, w.e.f. 1-4-1987. Earlier, this was inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R112]194BB” omitted by the Finance Act, 1986, w.e.f. 1-4-1987. Earlier, this was inserted by the Finance Act, 1978, w.e.f 1-4-1978.
[R113]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R114]Substituted for “super-tax” by the Finance Act, 1965, w.e.f. 1-4-1965.
[R115]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R116]“Or the total world income” omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
[R117]“Or supter-tax” omitted, ibid.
[R118]“Or supter-tax” omitted, ibid.
[R119]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R120]See rule 29 and Form No. 15.
[R121]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R122]“And super-tax” omitted by the Finance Act, 1965, w.e.f 1-4-1965.
[R123]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.
[R124]Sub-section (3) omitted
by the Finance Act, 1986, w.e.f. 1-4-1987. Prior to
its omission, sub-section (3), as substituted by the Finance (No. 2) Act, 1967,
w.e.f. 1-4-1968, stood as under :
“(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.”
[R125]Inserted by the Finance Act, 1982, w.e.f. 1-6-1982.
[R128]Substituted for “his estimated total income of the previous year in which such income is to be included in computing his total income will be less than the minimum liable to income-tax” by the Finance Act, 1990, w.e.f. 1-4-1990.
[R129]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R130]Substituted for “section 192 to 195” by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
[R131]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R132]Inserted by the Finance Act, 1978, w.e.f. 1-4-1978.
[R134]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R135]Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-11-1989.
[R136]Substituted for “and section 195” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R137]See also Circular No. 3-D(XXI-20), dated 30-3-1967.
[R138]Substituted for “sections 192 to 195” by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
[R139]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R140]Inserted by the Finance Act, 1978, w.e.f. 1-4-1978.
[R141]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R142]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R143]Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-11-1989.
[R144]Substituted for “and section 195” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R145]Substituted for “income-tax or super-tax, as the case may be,” by the Finance Act, 1965, w.e.f. 1-4-1965.
[R146]“(including a provisional assessment under section 141A), if any,” omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. The expression in italics was inserted by the Finance Act, 1968, w.e.f. 1-4-1968.
[R147]Substituted for “made for the immediately following assessment year under this Act” by the Finance Act, 1987, w.e.f. 1-6-1987.
[R148]Substituted by the Finance Act, 1968, with retrospective effect from 1-4-1962.
[R149]See rule 30A.
[R150]See rule 30.
[R151]Substituted for “sections 192 to 195” by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
[R152]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R153]Inserted by the Finance Act, 1978, w.e.f. 1-4-1978.
[R154]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R155]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R156]Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-11-1989.
[R157]Substituted for “and section 195” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R158]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R159]Substituted for “wilfully” by the Finance Act, 1966, w.e.f. 1-4-1966.
[R160]Inserted by the Finance Act, 1966, w.e.f. 1-4-1966.
[R161]See rule 119A.
[R162]Substituted for “twelve” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984; section 84 of the Amendment Act has clarified that the increase in the rate of interest will apply in respect of any period falling after 30-9-1984 and also in those cases where the interest became chargeable or payable from an earlier date. Earlier, “twelve” was substituted for “nine” by the Finance Act, 1972, w.e.f. 1-4-1972 and “nine” was substituted for “six” by the Taxation Laws (Amendment) Act, 1967, w.e.f. 1-10-1967.
[R163]Substituted for “it” by the Finance Act, 1966, w.e.f. 1-4-1966.
[R164]Substituted for “levy” by the Finance Act, 1987, w.e.f. 1-6-1987.
[R165]Substituted for “sections 192 to 195” by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
[R166]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R167]Inserted by the Finance Act, 1978, w.e.f. 1-4-1978.
[R168]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R169]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R170]Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-11-1989.
[R171]Substituted for “and section 195” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R172]Substituted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
[R173]See also Circular No. 529, dated 13-2-1989 and Circular No. 555, dated 22-2-1990.
[R174]See rule 31 and Form Nos. 16 and 17.
[R175]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R176]Inserted by the Finance Act, 1978, w.e.f. 1-4-1978.
[R177]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R178]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R179]Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-11-1989.
[R180]Substituted for “and section 195” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R181]Substituted for “shall, at the time of credit of payment of the sum, or, as the case may be, at the time of issue of a cheque or warrant for payment of any dividend to a shareholder” by the Finance Act, 1987, w.e.f. 1-6-1987.
[R182]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987. See rule 114A and Form No. 49B.
[R183]Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-11-1989.
[R184]Substituted for “and section 195” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R185]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R186]Substituted for “sections 192 to 203” by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
[R187]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R188]Inserted by the Finance Act, 1978, w.e.f. 1-4-1978.
[R189]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R190]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R191]Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-11-1989.
[R192]Section 285 since been omitted by the Finance Act, 1987, w.e.f. 1-6-1987.
[R193]Inserted by the Finance Act, 1986, w.e.f. 1-6-1986.
[R194]Substituted for “in the case of payments by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
[R195]Inserted by the Finance Act, 1986, w.e.f. 1-6-1986.
[R196]Substituted for “sections 192 to 195” by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
[R197]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R198]Inserted by the Finance Act, 1978, w.e.f. 1-4-1978.
[R199]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R200]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R201]Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-11-1989.
[R202]Substituted for “and section 195” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R203]Substituted by the
Finance Act, 1987, w.e.f. 1-6-1987. Prior to its
substitution, section 206, as amended by the Finance Act, 1965, w.e.f. 1-4-1965, stood as under:
‘206. Person paying salary to furnish
prescribed return.—(1) The prescribed person in the case of every office of
the Government, the principal officer in the case of every company, the
prescribed person tin the case of every local authority or other public body or
association, and every private employer shall prepare, and within thirty days
from the 31st day of March in each year, deliver or cause to be delivered to
the Income-tax Officer in the prescribed form and verified in the prescribed
manner, a return in writing showing—
(a) the name and, so far as it is known,
the address of every person who was receiving on the 31st day of March, or has
received or to whom was due during the year ending on that date, from the
Government, company, authority, body, association or private employer, as the
case may be, any income chargeable under the head “Salaries” of such amount as
may be prescribed;
(b) the amount of the income so received
by or so due to each such person, and the time or times at which the same was
paid or due, as the case may be;
(c) the amount deducted in respect of
income-tax from the income of each such person.
(2) Where an employer deducts from the emoluments paid to an employee or pays on his behalf any contributions of that employee to an approved superannuation fund, he shall include all such deductions or payments in the return which he is required to furnish under this section.’
[R204]See rule 36.
[R205]See rule 36.
[R206]See rule 36A.
[R207]See rules 36 and 37 and From Nos. 24, 25, 26, 26A, 26B, 26BB, 26C, 26D and 26E. Also see rule 37A and Form No. 27.
[R208]Inserted by the Finance
(No. 2) Act, 1967, w.e.f. 1-4-1967.
[R209]See rule 37AA and Form No.
27A.
[R210]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R211]Inserted by the Finance
(No. 2) Act, 1977, w.e.f. 1-10-1977.
[R212]See rule 37B and Form No.
27B.
[R214]Inserted by the Finance
Act, 1988, w.e.f. 1-6-1988.
[R215]See also Circular No. 535,
dated 26-6-1989.
[R216]See rule 37C and Form No.
27C.
[R217]Substituted for “Ten” by
the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from
1-6-1988.
[R218]See rule 37D and Form No.
27D.
[R219]Inserted by the Direct
Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R220]See rule 37F.
[R221]See rule 37E and Form Nos.
27EA to 27ED.
[R222]Substituted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
Original section 207 was earlier amended by the Finance Act, 1972, w.e.f. 1-4-1972.
[R223]Substituted
for the following section 208 by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988:
“(1)
Advance tax shall be payable during the financial year—
(a)
where the total income, exclusive of capital gains and income referred to in
sub-clause (ix) of clause (24) of section 2, of the assessee, referred to in sub-clause (i)
of clause (a) of sub-section (1) of section 209, exceeds the amount
specified in sub-section (2), or
(b) Where it is payable by virtue of
the provisions of section 209A.
(2) The amount referred to in clause (a)
of sub-section (1) shall be—
|
(a) |
in the case of a company or a local authority |
Rs. 2,500 |
|
(b) |
in the case of a registered firm |
Rs. 20,000 |
|
(c) |
in the case of a Hindu undivided family which at any time during
the previous year has at least one member whose total income of the previous
year exceeds Rs. 18,000 |
Rs. 12,000 |
|
(d) |
in any other case |
Rs. 18,000 |
(3)
Notwithstanding anything contained in the foregoing provisions of this
section, where in the case of an assessee referred to
in clause (c) or clause (d) of sub-section (2), the amount of
advance tax payable by him during the financial year, as computed in accordance
with the provisions of this section, does not exceed fifteen hundred rupees, it
shall not be necessary for such assessee to pay any
advance tax during that financial year.”
Prior to the
substitution by the said Amendment Act, section 208 was first substituted by
the Finance Act, 1969, w.e.f. 1-4-1969 and was later
amended by the Finance Act, 1972, w.e.f. 1-4-1972,
the Finance (No. 2) Act, 1977, w.e.f. 1-9-1977, the
Finance Act, 1978, w.e.f. 1-6-1978, the Finance Act,
1979, w.e.f. 1-4-1979, the Finance (No. 2) Act, 1980,
w.e.f. 1-9-1980, the Finance Act, 1981, w.e.f. 1-6-1981, the Taxation Laws (Amendment) Act, 1984, w.e.f. 2-4-1985 and the Finance Act, 1985, w.e.f. 24-5-1985.
[R224]Substituted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
Sub-section (1) was earlier amended by the Finance Act, 1963, w.e.f. 1-4-1963, the Finance Act, 1964, with retrospective
effect from 1-4-1963, the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964, the Finance Act, 1965, w.e.f. 1-4-1965, the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967, the Finance Act, 1969, w.e.f.
1-4-1969, the Taxation Laws (Amendment) Act, 1970, w.e.f.
1-4-1971, the Finance Act, 1972, w.e.f. 1-4-1972, the
Finance Act, 1973, w.e.f. 1-4-1973, the Finance Act,
1974, w.e.f. 1-4-1974 and the Finance Act, 1978, w.e.f. 1-6-1978. Prior to its substitution, sub-section (1)
stood as under:
“(1) The amount of advance tax payable by an assessee in the financial year shall, subject to the
provisions of sub-sections (2) and (3), be computed as follows :—
(a) (i)
his total income of the latest previous year in respect of which he has been
assessed by way of regular assessment shall first be ascertained;
(ii) the amount of capital gains and
income referred to in sub-clause (ix) of clause (24) of section
2, if any, included in such total income shall be deducted therefrom,
and on the balance income-tax shall be calculated at the rates in force in the
financial year;
(iii) the income-tax so calculated shall
be reduced by the amount of income-tax which would be deductible during the
said financial year in accordance with the provisions of sections 192 to 194,
section 194A, section 194C, section 194D and section 195 on any income (as
computed before allowing any deductions admissible under this Act) on which tax
is required to be deducted under the said sections and which has been taken
into account in computing the said total income;
(iv) the net amount of income-tax
calculated in accordance with sub-clause (iii) shall, subject to the
provisions of clauses (c) and (d), be the advance tax payable;
(b) [* * *]
(c) in cases where an estimate (including
a revised estimate) is sent by the assessee under
section 209A or section 212, the total income so estimated shall, for the
purposes of calculation of tax under this section, be substituted for the
total income referred to in clause (a);
(d) in cases where—
(i) the total
income of the latest previous year [being a year later than the previous year
referred to in clause (a)] on the basis of which tax has been paid by
the assessee under section 140A exceeds the total
income referred to in clause (a), or
(ii) the Income-tax Officer makes an
amended order referred to in sub-section (3) of section 210 on the basis of the
total income on which tax has been paid by the assessee
under section 140A, the total income referred to in clause (a) shall be
substituted,—
(1) in a case falling under sub-clause (i), by the total income on the basis of which tax
has been paid under section 140A, and
(2) in a case falling under sub-clause (ii),
by the total income on the basis of which the amended order under sub-section
(3) of section 210 is made.
Explanation : If the assessee is a partner of a registered firm and an
assessment of the firm has been completed for a previous year later than the latest
previous year for which the assessee’s assessment has
been completed, his share in the income of the firm shall, for the purposes of
clause (a), be included in his total income on the basis of the said
assessment of the firm.”
[R225]Inserted by the Direct
Tax Laws (Amendment) Act, 1989 with retrospective effect from 1-6-1988.
[R226]Inserted by the Finance
Act, 1974, w.e.f. 1-4-1974.
[R227]Substituted for “where
the assessee sends a statement under sub-section (1)
of section 209A or where the Income-tax Officer makes an order under
sub-section (1) or sub-section (3) of section 210” by the Direct Tax Laws
(Amendment) Act, 1987, w.e.f. 1-4-1988. Earlier, italicised words were inserted by the Finance Act, 1978, w.e.f. 1-6-1978.
[R228]Substituted for the
following by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988:
“(ii)
if the total income of the previous year on the basis of which tax has been
paid by the assessee under section 140A forms the
basis of computation of advance tax, the net agricultural income as returned by
the assessee in the return of income for the
assessment year relevant to that previous year;”
[R229]Substituted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 for
the following clause (b) as amended by the Finance Act 1978, w.e.f. 1-6-1978:
“(b)
in cases where an estimate (including a revised estimate) is sent by the assessee under section 209A or section 212, the net
agricultural income, as estimated by him, of the period which would be the
previous year for the immediately following assessment year.”
[R230]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R231]Inserted, ibid.
[R232]Substituted for “on the
basis of which tax has been paid by the Hindu undivided family under section
140A” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R233]Omitted section 209A, as
amended by the Finance Act, 1979, w.e.f. 1-4-1979 and
the Finance (No. 2) Act, 1980, w.e.f. 1-9-1980, stood
as under :
‘(1) Every person shall, in each financial year,
on or before the date on which the first instalment,
or where he has not previously been assessed by way of regular assessment
under this Act, on or before the date on which the last instalment,
of advance tax is due in his case under sub-section (1) of section 211, if his
current income is likely to exceed the amount specified in sub-section (2) of
section 208, send to the Income-tax Officer—
(a) where he has been previously assessed
by way of regular assessment under this Act, a statement of advance tax payable
by him computed in the manner laid down in clause (a) or, as the case
may be, sub-clause (i) of clause (d) of
sub-section (1) of section 209, or
(b) where he has not previously been
assessed by way of regular assessment under this Act, an estimate of—
(i) the current
income, and
(ii) the advance tax payable by him on
the current income calculated in the manner laid down in section 209,
and shall pay such amount of advance tax,—
(I) in a case falling under clause (b),
as accords with the statement in equal instalments on
the dates applicable in his case under section 211; and
(II) in a case falling under clause (b),
as accords with the estimate in equal instalments on
such of the dates applicable in his case as have not expired, or in one sum if
only the last of such dates has not expired.
(2) Where an assessee
who is required to send a statement under clause (a) of sub-section (1)
estimate on or before the date on which the first instalment
of advance tax is due in his case under sub-section (1) of section 211 that, by
reason of his current income being likely to be less than the income on which
advance tax is payable by him under sub-section (1) or for any other reason,
the amount of advance tax computed in the manner laid down in section 209 on
the current income would be less than the amount of advance tax payable by him
under sub-section (1), he may send to the Income-tax Officer, in lieu of such
statement, an estimate of—
(i) the current
income, and
(ii) the advance tax payable by him on
the current income calculated in the manner laid down in section 209,
and shall pay such amount of advance tax as
accords with his estimate in equal instalments on the
dates applicable in his case under section 211.
(3) Where an assessee
who has sent a statement under clause (a) of sub-section (1) estimates
on or before the date on which the last instalment of
advance tax is due in his case that, by reason of his current income being
likely to be less than the income on which advance tax is payable by him under
sub-section (1) or for any other reason, the amount of advance tax computed in
the manner laid down in section 209 on the current income would be less than
the amount of advance tax payable by him under sub-section (1), he may, at his
option, sent to the Income-tax Officer an estimate of—
(i) the current
income, and
(ii) the advance tax payable by him on
the current income calculated in the manner laid down in section 209,
and shall pay such amount of advance tax as
accords with his estimate in equal instalments on
such of the dates applicable in his case under section 211 as have not expired,
or in one sum if only the last of such dates has not expired.
(4) In the case of any assessee
who is liable to pay advance tax under sub-section (1) or sub-section (2) or,
as the case may be, sub-section (3), if, by reason of the current income being
likely to be greater than the income on which the advance tax so payable by him
has been computed or for any other reason, the amount of advance tax computed
in the manner laid down in section 209 on the current income (which shall be
estimated by the assessee) exceeds the amount of
advance tax so payable by him by more than 331/3 per cent of the latter amount,
he shall on or before the date on which the last instalment
of advance tax is payable by him, sent to the Income-tax Officer an estimate
of—
(i) the current
income, and
(ii) the advance tax payable by him on
the current income calculated in the manner laid down in section 209,
and shall pay such amount of advance tax as
accords with his estimate on such of the dates applicable in his case under section
211 as have not expired, by instalments which may be
revised according to sub-section (5) :
Provided that in a case where the Commissioner is
satisfied that, having regard to the nature of the business carried on by the assessee and the date of expiry of the previous year in
respect of such business, it will be difficult for the assessee
to furnish the estimate required to be furnished by him in accordance with the
provisions of this sub-section on or before the date on which the last instalment of advance tax is due in his case, he may, if
the assessee pays the advance tax which he is liable
to pay under sub-section (1) or sub-section (2) or, as the case may be,
sub-section (3) on or before such date, extend the date for furnishing such
estimate up to a period of thirty days immediately following the last date of
the previous year in respect of that business and, where the date is so
extended, the assessee shall pay, on or before the
date as so extended, the amount by which the advance tax already paid by him
falls short of the advance tax payable in accordance with his estimate :
Provided further that in the case of an assessee, being a company, the provisions of this
sub-section shall have effect as if for the figures and words “331/3 per cent”,
the figures and words “20 per cent” had been substituted.
(5) The assessee may
send a revised estimate of the advance tax payable by him on or before any one
of the dates specified in section 211 and adjust any excess or deficiency in
respect of any instalment already paid in a
subsequent instalment or in subsequent instalments.
(6) Every statement or estimate under this
section shall be sent in the prescribed form and verified in the prescribed
manner.
Explanation : For the purposes of
this section and section 212, “current income”, in relation to the advance tax
payable by an assessee during any financial year,
means the total income of the assessee (exclusive of
capital gains and income referred to in sub-clause (ix) of clause (24)
of section 2, if any) of the period which would be the previous year for the
assessment year immediately following that financial year.’
[R234]Substituted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
Earlier, it was amended by the Finance Act, 1963, w.e.f.
1-4-1963, the Direct Taxes (Amendment) Act, 1964, w.e.f.
6-10-1964, the Finance Act, 1969, w.e.f. 1-4-1969 and
the Taxation Laws (Amendment) Act, 1970, w.e.f.
1-4-1971. Prior to its substitution, section 210 stood as under :
“Order by Income-tax Officer.—(1) Where a
person has been previously assessed by way of regular assessment under this
Act or under the Indian Income-tax Act, 1922 (11 of 1922), the Income-tax
Officer may, on or after the 1st day of April in the financial year, by order
in writing, require him to pay to the credit of the Central Government advance
tax determined in accordance with the provisions of sections 207, 208 and 209.
(2)
The notice of demand issued under section 156 in pursuance of such order shall
specify the instalments in which the advance tax is
payable under section 211.
[R235]See rule 39 and Form No.
28A.
[R236]Substituted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
Earlier, it was amended by the Finance Act, 1969, w.e.f.
1-4-1969, the Finance Act, 1972, w.e.f. 1-4-1972 and
the Finance Act, 1978, w.e.f. 1-6-1978. Prior to its
substitution, section 211 stood as under :
‘Instalments
of advance tax.—(1) Subject to the provisions of this section and of
sections 209A and 212, advance tax shall be payable in three equal instalments on the following dates during the financial
year, namely :—
(i) the 15th day of June, the 15th day of
September and the 15th day of December, in the case of an assessee
whose total income to the extent of 75 per cent thereof or more is derived from
a source or sources for which the previous year (relevant to he assessment year
next following the financial year aforesaid) ends on or before the 31st day of
December;
(ii)
the 15th day of September, the 15th day of December and the 15th day of
March, in any other case :
Provided that in respect of any class of assessees
referred to in clause (i), the Board may,
having regard to the nature of dealings in the business carried on by such
assessees, the method of
accounting followed by them and other relevant factors, authorise,
by notification in the Official Gazette and subject to such conditions as may
be specified therein, the payment of the last instalment
of the advance tax on the 15th day of March during the financial year, instead
of on the 15th day of December.
Explanation : In this sub-section, “total income”
means,—
(a)
in a case where the advance tax is paid by the assessee
in accordance with the statement sent by him under sub-section (1) of section
209A or in accordance with an order of the Income-tax Officer under section
210, the total income with reference to which the advance tax payable has been
calculated in such statement or order;
(b)
in a case where the advance tax is paid in accordance with an estimate
(including a revised estimate) made by the assessee
under section 209A or section 212, the total income with reference to which the
advance tax is so estimated.
as reduced, in either case, by the amount of
capital gain and income referred to in sub-clause (ix) of clause (24)
of section 2, if any, included therein.
(2)
If the notice of demand issued under section 156 in pursuance of the order
under section 210 is served after any of the dates on which the instalments specified therein are payable, the advance tax
shall be payable in equal instalments on each of such
of those on dates as fall after the date of the service of the notice of
demand, or in one sum on the 15th day of March, if the notice is served after
the 15th day of December.’
[R237]Prior to its omission,
section 212 stood as under:
‘(1) If any assessee
who is required to pay advance tax by an order under section 210 estimates on
or before the date on which the last instalment of
advance tax is due in his case that, by reason of his current income being
likely to be less than the income on which the advance tax payable by him under
section 210 has been computed or for any other reason, the advance tax payable by
him would be less than the amount which he is so required to pay, he may, at
his option, send to the Income-tax Officer an estimate of—
(i) the current income, and
(ii) the
advance tax payable by him on the current income calculated in the manner laid
down in section 209, and shall pay such amount of advance tax as accords with
his estimate in equal instalments on such of the
dates applicable in his case under section 211 as have not expired, or in one
sum if only the last of such dates has not expired.
(2) The assessee may
send a revised estimate of the advance tax payable by him on or before any one
of the dates specified in section 211 and adjust any excess or deficiency in
respect of any instalment already paid in a
subsequent instalment or in subsequent instalments.
(3) [***]
(3A) In the case of any assessee
who is required to pay advance tax by an order under section 210, if, by reason
of the current income being likely to be greater than the income on which the advance
tax payable by him under section 210 has been computed or for any other reason,
the amount of advance tax computed in the manner laid down in section 209 on
the current income (which shall be estimated by the assessee)
exceeds the amount of advance tax demanded from him under section 210 by more
than 331/3 per cent of the latter amount, he shall, on or before the date on
which the last instalment of advance tax is due from
him, send to the Income-tax Officer an estimate of—
(i) the current income, and
(ii) the
advance tax payable by him on the current income calculated in the manner laid
down in section 209, and shall pay such amount of advance tax as accords with
his estimate on such of the dates applicable in his case under section 211 as
have not expired, by instalments which may be revised
according to sub-section (2) :
Provided that in a case where the Commissioner is
satisfied that, having regard to the nature of the business carried on by the assessee and the date of expiry of the previous year in
respect of such business, it will be difficult for the assessee
to furnish the estimate required to be furnished by him in accordance with the
previous of this sub-section on or before the date on which the last instalment of advance tax is due in his case, he may, if
the assessee pays the advance tax demanded from him
under section 210 before such date, extend the date for furnishing such estimate
up to a period of thirty days immediately following the last date of the
previous year in respect of that business, and where the date is so extended,
the assessee shall pay, on or before the date as so
extended, the amount by which the amount of advance tax already paid by him
falls short of the advance tax payable in accordance with his estimate :
Provided further that in the case of an assessee, being a company, the provisions of this
sub-section shall have effect as if for the figures and words “331/3 per cent”,
the figures and words “20 per cent” had been substituted.
(4) Every estimate under this section shall be
sent in the prescribed form and verified in the prescribed manner.’ Earlier,
it was amended by the Finance Act, 1969, w.e.f.
1-4-1969, the Finance Act, 1970, w.e.f. 1-4-1970, the
Finance Act, 1972, w.e.f. 1-4-1972, the Finance Act,
1978, w.e.f. 1-6-1978, the Finance Act, 1979, w.e.f. 1-4-1979 and the Finance (No. 2) Act, 1980, w.e.f. 1-9-1980.
[R238]Prior to its omission,
section 213 stood as under :
“Where
part of the income subject to advance tax consists of any income of the nature of
commission which is receivable periodically and is not received or adjusted by
the payer in the assessee’s account before any of the
instalments of advance tax become due, he may defer
payment of advance tax on that part of his income to the date on which such
income would be normally received or adjusted, and, if he does so, he shall
communicate to the Income-tax Officer the date to which such payment is
deferred:
Provided that, if the advance tax
of which the payment is deferred is not paid within fifteen days of the date
on which such income or part thereof is received or adjusted by the payer in
the assessee’s account, the advance tax shall be
payable with fifteen per cent simple interest per annum from the date of such
receipt or adjustment to the date of payment the advance tax.”
Earlier, it was amended by the
Finance Act, 1965, w.e.f. 1-4-1965, the Taxation Laws
(Amendment) Act, 1967, w.e.f 1-10-1967, the Finance
Act, 1969, w.e.f. 1-4-1969, the Finance Act, 1972, w.e.f. 1-4-1972 and the Taxation Laws (Amendment) Act,
1984, w.e.f. 1-10-1984.
[R239]See rule 119A.
[R240]See also Letter [F. No:
12/80/64-IT(B)], dated 1-3-1965, Letter [F. No. 400/59/75-ITCC], dated
10-10-1973] and Letter [F. No. 12/12/68-IT (A-II)], dated 11-12-1968.
[R241]Substituted for “twelve”
by the Taxation Laws (Amendment) Act, 1984, w.e.f.
1-10-1984; section 84 of the Amendment Act has clarified that the increase in
the rate of interest will apply in respect of any period falling after
30-9-1984 and also in those cases where the interest became chargeable or
payable from an earlier date. Earlier, “twelve” was substituted for “nine” by
the Finance Act, 1972, w.e.f. 1-4-1972 “nine” was
substituted for “six” by the Taxation Laws (Amendment) Act, 1967, w.e.f. 1-10-1967, and “six” was substituted for “four” by
the Finance Act, 1965, w.e.f. 1-4-1965.
[R242]Substituted for “tax
determined on regular assessment” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985.
[R243]Inserted by the Finance
Act, 1968, w.e.f. 1-4-1968.
[R244]Substituted by the Taxation
Laws (Amendment) Act, 1984, w.e.f. 1-4-1985. Original
sub-section (1A) was inserted by the Finance Act, 1968, w.e.f.
1-4-1968 which read as under:
“(1A)
Where on completion of the regular assessment the amount on which interest was
paid under sub-section (1) has been reduced, the interest shall be reduced
accordingly and the excess, if any, paid shall be deemed to be tax payable by
the assessee and the provisions of this Act, shall
apply accordingly.”
[R245]Inserted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R246]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R247]Inserted ibid., w.e.f. 1-4-1989.
[R248]Inserted by the Taxation
Laws (Amendment) Act, 1984, w.e.f. 1-4-1985.
[R249]See also Letter [F. No.
400/40/73-ITCC], dated 19-10-1973 and Circular No. 492, dated 21-7-1987.
[R250]Substituted by the
Finance Act, 1969, w.e.f. 1-4-1970.
[R251]See rules 119A.
[R252]Substituted for “advance
tax under section 212 on the basis of his own estimate” by the Finance Act,
1978, w.e.f 1-6-1978.
[R253]Substituted for “twelve”
by the Taxation Laws (Amendment) Act, 1984, w.e.f.
1-10-1984; section 84 of the Amendment Act has clarified that the increase in
the rate of interest will apply in respect of any period falling after
30-9-1984 and also in those cases where the interest became chargeable or
payable from an earlier date. Earlier, “twelve” was substituted for “nine” by
the Finance Act, 1972, w.e.f. 1-4-1972.
[R254]Inserted by the Finance
(No. 2) Act, 1980, w.e.f. 1-9-1980.
[R255]Substituted by the
Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
Initially, sub-section (2) was substituted by the Finance Act, 1963 w.e.f. 1-4-1963 which was later on amended by the Finance
Act, 1969, w.e.f. 1-4-1970.
[R256]Substituted for the
following by the Taxation Laws (Amendment) Act, 1984, w.e.f.
1-4-1985 :
“(3)
Where as a result of an order under section 154 or section 155 or section 250
or section 254 or section 260 or section 262 or section 264, the amount on
which interest was payable under this section has been reduced, the interest
shall be reduced accordingly and the excess interest paid, if any, shall be
refunded.”
[R257]Inserted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R258]Substituted for “Income-tax”
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R259]See rule 40.
[R260]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R261]Inserted by the Finance
Act, 1969, w.e.f. 1-4-1970.
[R262]Inserted by the Finance
Act, 1972, w.e.f. 1-4-1972.
[R263]Inserted by the Finance
Act, 1973, w.e.f. 1-4-1973.
[R264]Substituted for “and
section 195” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989.
[R265]Inserted by the Taxation
Laws (Amendment) Act, 1984, w.e.f. 1-4-1985.
[R266]See rule 119A.
[R267]See also letter [F. No.
400/58/78-ITCC], dated 29-2-1980.
[R268]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R269]Substituted by the
Finance Act, 1969, w.e.f. 1-4-1970.
[R270]Substituted for “sub-section
(1) or sub-section (2) or sub-section (3) or sub-section (3A) of section 212”
by the Finance Act, 1978, w.e.f. 1-6-1978.
[R271]Substituted for “twelve”
by the Taxation Laws (Amendment) Act, 1984, w.e.f.
1-10-1984; section 84 of the Amendment Act has clarified that the increase in
the rate of interest will apply in respect of any period falling after
30-9-1984 and also in those cases where the interest became chargeable or
payable from an earlier date. Earlier, “twelve” was substituted for “nine” by the
Finance Act, 1972, w.e.f. 1-4-1972, “nine” was
substituted for “six” by the Taxation Laws (Amendment) Act, 1967, w.e.f. 1-10-1967 and “six” was substituted for “four” by
the Finance Act, 1965, w.e.f. 1-4-1965.
[R272]See rules 119A.
[R273]Substituted by the Finance
Act, 1969, w.e.f. 1-4-1970.
[R274]Substituted for “the
Income-tax Officer finds that any such person as is referred to in sub-section
(3) of section 212 has not sent the estimate referred to therein” by the
Finance Act, 1978, w.e.f. 1-6-1978.
[R275]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R276]Substituted for “twelve”
by the Taxation Laws (Amendment) Act, 1984, w.e.f.
1-10-1984; section 84 of the Amendment Act has clarified that the increase in
the rate of interest will apply in respect of any period falling after
30-9-1984 and also in those cases where the interest became chargeable or
payable from an earlier date. Earlier, “twelve” was substituted for “nine” by
the Finance Act, 1972, w.e.f. 1-4-1972.
[R277]Substituted for
“sub-section” by the Finance Act, 1978, w.e.f.
1-6-1978.
[R278]Inserted by the Finance
Act, 1969, w.e.f. 1-4-1970.
[R279]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R280]Inserted by the Finance
Act, 1978, w.e.f 1-6-1978.
[R281]Substituted for “twelve”
by the Taxation Laws (Amendment) Act, 1984, w.e.f.
1-10-1984; section 84 of the Amendment Act has clarified that the increase in
the rate of interest will apply in respect of any period falling after
30-9-1984 and also in those cases where the interest became chargeable or
payable from an earlier date. Earlier, “twelve” was substituted for “nine” by
the Finance Act, 1972, w.e.f. 1-4-1972.
[R282]Substituted for
“sub-section” by the Finance Act, 1978, w.e.f.
1-6-1978.
[R283]See rule 40.
[R284]Substituted for the
following sub-sections (1) to (3) of section 218, as substituted by the Finance
Act, 1978, w.e.f. 1-6-1978 and later on amended by
the Finance Act, 1979, w.e.f. 1-4-1979, by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 :
“(1) If any assessee
has sent,—
(a) under sub-section (1) of section
209A, a statement, or
(b) under section 209A or section 212, an
estimate or a revised estimate,
of the advance tax payable by him, but does not
pay any instalment in accordance therewith on the
date or dates specified in section 211, he shall be deemed to be an assessee in default in respect of such instalment
or instalments.
(2) If any assessee
does not pay on the specified date any instalment of
advance tax that he is required to pay under section 210 and does not, on or
before the date on which any such instalment as is
not paid becomes due, send under sub-section (1) or sub-section (2) of section
212 an estimate or a revised estimate of the advance tax payable by him, he shall
be deemed to be an assessee in default in respect of
such instalment or instalments.
(3)
Notwithstanding anything contained in sub-section (1) or sub-section (2), an assessee shall not be deemed to be in default in respect of
any amount of which the payment is deferred under section 213 until after the
date communicated by him to the Income-tax Officer under that section.”
[R285]Proviso omitted by the
Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1989. Original proviso, as inserted by the Finance Act, 1968, w.e.f. 1-4-1968, stood as under:
“Provided
that where, before the completion of the regular assessment, a provisional
assessment is made under section 141A, the credit shall be given also in such
provisional assessment.”
[R286]See also Circular No. 334, dated
3-4-1982. Instruction No. 96, dated 21-8-1969 and Circular No. 530, dated
6-3-1989.
[R287]Substituted for
“thirty-five” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1989.
[R288]Substituted for
“Income-tax”, ibid., w.e.f. 1-4-1988.
[R289]Substituted for
“thirty-five” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1989.
[R290]Substituted for
“Inspecting Assistant”, ibid.
[R291]See rule 119A.
[R292]Substituted for “fifteen
per cent per annum from the day commencing after the end of the period
mentioned in sub-section (1)” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R293]Inserted by the Finance
Act, 1963, with retrospective effect from 1-4-1962.
[R294]Inserted by the Taxation
Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R295]Inserted by the Taxation Laws
(Amendment) Act, 1987, w.e.f. 1-4-1989.
[R296]Inserted by the Taxation
Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
[R297]Substituted for “the
Board may” by the Taxation Laws (Amendment & Miscellaneous Provisions) Act,
1986, w.e.f. 1-4-1987.
[R298]Substituted for
“Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R299]Inserted by the Taxation
Laws (Amendment & Miscellaneous Provisions) Act, 1986, with retrospective
effect from 1-10-1984.
[R300]Substituted for “, on the
recommendation made by the Commissioner in this behalf, it is satisfied”, ibid,
w.e.f. 1-4-1987.
[R301]Inserted by the Taxation
Laws (Amendment & Miscellaneous Provisions) Act, 1986, with retrospective
effect from 1-10-1984.
[R302]Inserted by the Taxation
Laws (Amendment & Miscellaneous Provisions) Act, 1986, with retrospective
effect from 1-10-1984.
[R303]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R304]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R305]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R306]See also Letter [F.No. 16/87/67-IT(B)], dated 10-7-1967.
[R307]Substituted by the
Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[R308]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R309]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R310]Substituted by the
Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986. Prior to its substitution, the second
proviso stood as under:
“Provided
further that where the Income-tax Officer is satisfied that the default was
for good and sufficient reasons, no penalty shall be levied under this section.”
[R311]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R312]Inserted by the Taxation
Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R313]Substituted for the
following, section 222 as amended by the Direct Tax Laws (Amendment) Act, 1989,
w.r.e.f. 1-4-1988, by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1989:
“When
an assessee is in default or is deemed to be in
default in making a payment of tax, the Assessing Officer may forward to the
Tax Recovery Officer a certificate under his signature specifying the amount of
arrears due from the assessee, and the Tax Recovery
Officer on receipt of such certificate, shall proceed to recover from such assessee the amount specified therein by one or more of the
modes mentioned below, in accordance with rules laid down in the Second
Schedule—”
[R314]Inserted by the Taxation
Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R315]Substituted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
Prior to its substitution sub-section (2) as amended by the Direct Tax Laws
(Amendment) Act, 1989, with retrospective effect from 1-4-1988, stood as under:
“(2)
The Assessing Officer may issue a certificate under sub-section (1),
notwithstanding that proceeding for recovery of the arrears by any other mode
have been taken.”
[R316]Substituted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
Prior to its substitution, section 223, as amended by the Direct Tax Laws
(Amendment) Act, 1989, with retrospective effect from 1-4-1988 and the Taxation
Laws (Amendment) Act, 1975, w.e.f. 1-10-1975, stood
as under :
“Tax Recovery Officer to whom certificate is
to be issued.—(1) The Assessing Officer may forward that certificate
referred to in section 222 to—
(a) the Tax Recovery Officer within whose
jurisdiction the assessee carries on his business or
profession or within whose jurisdiction the principal place of his business or
profession is situate; or
(b) the Tax Recovery Officer within whose
jurisdiction the assessee resides or any movable or
immovable property of the assessee is situate.
(2) Where an assessee
has property within the jurisdiction of more than one Tax Recovery Officer and
the Tax Recovery Officer to whom a certificate is sent by an Assessing Officer—
(a) is not able to recover the entire
amount by the sale of the property, movable or immovable, within his
jurisdiction, or
(b) is of the opinion that, for the
purpose of expediting or securing the recovery of the whole or any part of the
amount under this Chapter, it is necessary so to do,
he
may send the certificate or, where only a part of the amount is to be
recovered, a copy of the certificate certified in the prescribed manner and
specifying the amount to be recovered to a Tax Recovery Officer within whose
jurisdiction the assessee resides or has property,
and thereupon that Tax Recovery Officer shall also proceed to recover the
amount under this Chapter as if the certificate or the copy thereof had been
the certificate sent to him by the Assessing Officer.”
[R317]Substituted for the
following, as amended by the Direct Tax Laws (Amendment) Act, 1989, with
retrospective effect from 1-4-1988, by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989:
“Validity of certificate, and amendment thereof.—(1)
When the Assessing Officer sends a certificate to a Tax Recovery Officer under
section 222, it shall not be open to the assessee to
dispute before the Tax Recovery Officer the correctness of the assessment, and
no objection to the certificate on any ground shall be entertained by the Tax
Recovery Officer.
(2) Notwithstanding the issue of a certificate
to a Tax Recovery Officer, the Assessing Officer shall have power to withdraw
or correct any clerical or arithmetical mistake in the certificate by sending
an intimation to the Tax Recovery Officer.
(3)
The Assessing Officer shall intimate to the Tax Recovery Officer any orders
withdrawing or cancelling a certificate or any
correction made by him under sub-section (2) of this section or any amendment
made under sub-section (4) of section 225.”
[R318]Substituted for the
following, as amended by the Direct Tax Laws (Amendment) Act, 1989, with
retrospective effect from 1-4-1988, by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989:
“Stay of proceedings under certificate and
amendment or withdrawal thereof.—(1) Notwithstanding that a certificate
has been issued to the Tax Recovery Officer for the recovery of any tax, the
Assessing Officer may grant time for the payment of the tax, and thereupon the
Tax Recovery Officer shall stay the proceedings until the expiry of the time so
granted.
(2) Where a certificate for the recovery of tax
has been issued, the Assessing Officer shall keep the Tax Recovery Officer informed
of any tax paid or time granted for payment, subsequent to the issue of such
certificate.
(3) Where the order giving rise to a demand of
tax for which a certificate for recovery has been issued has been modified in
appeal or other proceeding under this Act, and, as a consequence thereof, the
demand is reduced by the order is the subject-matter of further proceeding
under this Act, the Assessing Officer shall stay the recovery of such part of
the amount of the certificate as pertains to the said reduction for the period
for which the appeal or other proceeding remains pending.
(4)
Where a certificate for the recovery of tax has been issued and subsequently
the amount of the outstanding demand is reduced as a result of an appeal or
other proceeding under this Act, the Assessing Officer shall, when the order
which was the subject-matter of such appeal or other proceeding has become
final and conclusive, amend the certificate or withdraw it, as the case may
be.”
[R319]Substituted for the
following, as amended by the Direct Tax Laws (Amendment) Act, 1989, with
retrospective effect from 1-4-1988, by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989:
“(1)
Notwithstanding the issue of a certificate to the Tax Recovery Officer under
section 222, the Assessing Officer may recover the tax by any one or more of
the modes provided in this section.”
[R320]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective
effect from 1-4-1988.
[R321]Inserted, ibid. w.e.f. 1-4-1989.
[R322]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective
effect from 1-4-1988.
[R323]Inserted, ibid., w.e.f. 1-4-1989.
[R324]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective
effect from 1-4-1988.
[R325]Inserted, ibid., w.e.f. 1-4-1989.
[R326]substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective
effect from 1-4-1988.
[R327]Inserted, ibid., w.e.f. 1-4-1989.
[R328]substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective
effect from 1-4-1988.
[R329]Inserted, ibid., w.e.f. 1-4-1989.
[R330]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective
effect from 1-4-1988.
[R331]Inserted, ibid., w.e.f. 1-4-1989.
[R332]substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective
effect from 1-4-1988.
[R333]Inserted, ibid., w.e.f. 1-4-1989.
[R334]substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective
effect from 1-4-1988.
[R335]Inserted, ibid., w.e.f. 1-4-1989.
[R336]substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective
effect from 1-4-1988.
[R337]Inserted, ibid., w.e.f. 1-4-1989.
[R338]substituted for “Income-tax”
by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from
1-4-1988.
[R339]Inserted, ibid., w.e.f. 1-4-1989.
[R340]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective
effect from 1-4-1988.
[R341]Inserted, ibid., w.e.f. 1-4-1989.
[R342]Substituted by the
Finance Act, 1965, w.e.f. 1-4-1965.
[R343]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective
effect from 1-4-1988.
[R344]Inserted, ibid., w.e.f. 1-4-1989.
[R345]Substituted for
“Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R346]Prior to its omission,
section 228, as amended by the Direct Tax Laws (Amendment) Act, 1989, with
retrospective effect from 1-4-1988, stood as under:
‘(1) The Assessing Officer may forward a
certificate under section 222 to a Collector in Pakistan through the Central
Board of Revenue of Pakistan, if the assessee has
property in the district of that Collector, and for the purposes of that
section, the expression “Tax Recovery Officer” shall include a Collector in
Pakistan.
(2) Where a Collector in India receives through
the Board a certificate under the signature of an Assessing Officer in Pakistan,
the Collector shall proceed to recover the amount specified therein in the
manner in which he would proceed to recover the amount specified in a
certificate received from an Assessing Officer in India, and shall remit any
sum so recovered by him to the Assessing Officer in Pakistan, after deducting
his expenses in connection with the recovery proceedings.
(3)
The provisions of this section shall remain in force only so long as there are
in force similar provisions in the law of Pakistan for the recovery of tax by a
Collector in Pakistan on receipt of a certificate from an Assessing Officer in
India.’
[R347]Inserted by the Finance
Act, 1972, w.e.f. 1-4-1972.
[R348]Substituted for
“specified in a certificate received from an Assessing Officer” by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
Earlier it was amended by the Direct Tax Laws (Amendment) Act, 1989, with
retrospective effect from 1-4-1988.
[R349]Substituted for the
following, as amended by the Direct Tax Laws (Amendment) Act, 1989, with
retrospective effect from 1-4-1988, by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989:
“(2)
Notwithstanding the issue of a certificate under section 222 to the Tax
Recovery Officer, where an assessee is in default or
is deemed to be in default in making a payment of tax, the Assessing Officer
may, if the assessee has property in a country
outside India (being a country with which the Central Government has entered
into an agreement for the recovery of income-tax under this Act and the
corresponding law in force in that country), forward to the Board a
certificate specifying the amount of arrears due from the assessee
and the Board may take such action thereon as it may deem appropriate having
regard to the terms of the agreement with such country.”
[R350]See also Circular No.
31(LIXVI-10), dated 15-11-1960, Letter [F.No.
458/3/72-FTD], dated 15-5-1973 and Circular No. 546, dated 4-10-1989.
[R352]Substituted for “no
person who is not domiciled in India, or who, even if domiciled in India at the
time of his departure, has, in the opinion of an income-tax authority no intention
of returning to India, shall leave the territory of India” by the Direct Tax
Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R355]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R356]See rules 42, 43 and 44 and
Form Nos. 31, 32, 33 and 34.
[R357]Inserted by the Direct
Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964.
[R358]See also Circular No. 191,
dated 4-3-1976.
[R359]“(Other than agricultural
land)” omitted by the Finance (No. 2) Act, 1971, w.e.f.
1-10-1971.
[R360]Substituted for “fifty
thousand” by the Finance Act, 1988, w.e.f. 1-4-1988.
[R361]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R362]Substituted for “and the
Gift-tax Act, 1958 (18 of 1958)” by the Finance (No. 2) Act, 1971, w.e.f. 1-10-1971.
[R363]See rules 44A and 44B and Form No. 34A.
[R364]Inserted by the Finance (No. 2) Act,
1971, w.e.f. 1-10-1971.
[R366]Prior to its omission,
section 231 [as amended by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984], stood as under:
“Save in accordance with the provisions of
section 173 or sub-section (7) of section 220, no proceedings for the recovery
of any sum payable under this Act shall be commenced after the expiration of
three years from the last day of the financial year in which the demand is
made, or, in the case of a person who is deemed to be an assessee
in default under any provision of this Act, after the expiration of three years
from the last day of the financial year in which the assessee
is deemed to be in default.
Explanation 1 : The period of three years referred to
above shall be reckoned—
(i) where an assessee
has been treated as not being in default under sub-section (6) of section 220,
as long as his appeal is undisposed of, from the last
day of the financial year in which the appeal is disposed of;
(ii)
where recovery proceedings in any case have been stayed by any order of
a court, from the last day of the financial year in which the order is
withdrawn;
(iii) where the date of payment of tax
has been extended by an income-tax authority to another date, from the last day
of financial year in which such other date falls;
(iv) where the sum payable is allowed to
be paid by instalments, from the last day of the
financial year in which the last of such instalments
is due.
Explanation
2 : A
proceeding for the recovery of any sum shall be deemed to have commenced with
the meaning of this section, if some action is taken to recover the whole or
any part of the sum within the period hereinbefore referred to.”
[R367]Substituted for
“Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R368]Prior to its omission,
section 234, as amended by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1968/1-4-1971, stood as under:
“Tax
paid or deemed to have been paid under the provisions of Chapter XVII-B or
Chapter XVII-C in respect of any income provisionally assessed under section
141A shall be deemed to have been paid towards the provisional assessment.”
[R369]Inserted by the Direct Tax
Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R370]Inserted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R371]Substituted for “the tax
on the total income as determined on regular assessment as reduced by the
advance tax, if any, paid and any tax deducted at source” by the Direct Tax
Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R372]Substituted, ibid.
[R373]Substituted, ibid.
[R374]Substituted, ibid.
[R375]Inserted by the Direct
Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R376]Omitted, ibid.
[R377]Inserted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R378]Substituted for “to the
date of the regular assessment” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R379]Substituted, ibid.
[R380]Substituted by the Direct
Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R381]Inserted, ibid.
[R382]Substituted for “the date
of the regular assessment”, ibid.
[R383]Inserted, ibid.
[R384]Omitted, ibid.
[R385]Inserted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R386]Inserted by the Direct Tax
Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R387]Substituted for “the
amount of tax deductible at source in accordance with the provisions of Chapter
XVII-B on any income which is subject to such deduction”, ibid.