Chapter XVII
Collection
and recovery of tax
Deduction at source and advance payment.
66[R1] 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 67[R2] [or collection] at source or by advance
payment 68[R3] [or by payment under sub-section (1A) of
section 192], 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.
69[R4] 191. 70[R5] [***] In the case of income in respect of
which provision 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.
72[R7] [Explanation.—For
the removal of doubts, it is hereby declared that if any person referred to in
section 200 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 the whole
or any part of the tax and such tax has not been paid by the assessee direct,
then, such person, the principal officer and the company shall, without
prejudice to any other consequences which he or it may incur, be deemed to be
an assessee in default as referred to in sub-section
(1) of section 201 in respect of such tax.]
B.—Deduction at source
Salary.
73[R8] 192. 74[R9] (1) Any
person responsible for paying any income chargeable under the head “Salaries”
shall, at the time of payment, deduct income-tax 75[R10] [***]
on the amount payable at the average rate of income-tax 76[R11] [***]
computed on the basis of the 77[R12] [rates
in force] for the financial year in which the payment is made, on the estimated
income of the assessee under this head for that financial year.
78[R13] (1A) Without prejudice to the provisions
contained in sub-section (1), the person responsible for paying any income in
the nature of a perquisite which is not provided for by way of monetary
payment, referred to in clause (2)
of section 17, may pay, at his option, tax on the whole or part of such income
without making any deduction there from at the time when such tax was otherwise
deductible under the provisions of sub-section (1).
(1B) For the purpose of paying tax under sub-section
(1A), tax shall be determined at the average of income-tax computed on the
basis of the rates in force for the financial year, on the income chargeable
under the head “Salaries” including the income referred to in sub-section (1A),
and the tax so payable shall be construed as if it were, a tax deductible at
source, from the income under the head “Salaries” as per the provisions of
sub-section (1), and shall be subject to the provisions of this Chapter.]
79[R14] [(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 prescribed80[R15] ,
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).]
81[R16] (2A)
Where the assessee, being a Government servant or an employee in a 82[R17] [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).]
83[R18] 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.]
84[R19] [(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
other than the loss under the head “Income from house property”) 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—
(a) such other income and of any tax deducted thereon under any
other provision of this Chapter;
(b) the loss, if any, under the head “Income from house property”,in such form and verified in such manner as may
be prescribed85[R20] ,
and thereupon the person responsible as aforesaid shall take—
(i) such other income and tax, if any, deducted thereon; and
(ii) the loss, if any, under the head “Income from house property”,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 except where the loss under the
head “Income from house property” has been taken into account, from 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.]
86[R21] [(2C)
A person responsible for paying any
income chargeable under the head “Salaries” shall furnish to the person to whom
such payment is made a statement giving correct and complete particulars of
perquisites or profits in lieu of salary provided to him and the value thereof
in such form and manner as may be prescribed87[R22] .]
(3) The person responsible for making the
payment referred to in sub-section (1) 88[R23] [or
sub-section (1A)] 89[R24] [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.
90[R25] (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, 91[R26] [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.
92[R27] (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.
94[R29] Interest on securities.
95[R30] 193. The
person responsible for paying 96[R31] [to
a resident] any income 97[R32] [by
way of interest on securities] shall, 98[R33] [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 99[R34] [***]
at the rates in force on the amount of the interest payable :
2[R36] Provided
3[R37] [***]
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
4[R38] [(ia) any
interest payable to an individual on 4¼ per cent National Defence Loan, 1968,
or 4¾ per cent National Defence Loan, 1972; or]
5[R39] [(ib) any interest payable on National
Development Bonds; or]
7[R41] [(iia) any
interest payable on 7-Year National Savings Certificates (IV Issue); or]
8[R42] [(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 notification9[R43] in
the Official Gazette, specify 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[R46] [(iv) any interest payable on any security of
the Central Government or a State Government;]
13[R47] [(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 14[R48] [two
thousand and five hundred rupees];]
15[R49] (vi) any interest
payable to the Life Insurance Corporation of India established under the Life
Insurance Corporation Act, 1956 (31 of 1956), in respect of any securities owned by it or in which it has full
beneficial interest; or
(vii) any interest payable to the General
Insurance Corporation of India (hereafter in this clause referred to as the
Corporation) or to any of the four companies (hereafter in this clause referred
to as such company), formed by virtue of the schemes framed under sub-section
(1) of section 16 of the General Insurance Business (Nationalisation) Act, 1972
(57 of 1972), in respect of any securities owned by the Corporation or such
company or in which the Corporation or such company has full beneficial
interest; or
(viii) any
interest payable to any other insurer in respect of any securities owned by it
or in which it has full beneficial interest.]
16[R50] Explanation 17[R51] [***].—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 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.]
Explanation 2.—18[R52] [Omitted by the Finance Act, 1992, w.e.f.
1-6-1992.]
19[R53] 194. 20[R54] 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 dividend or
before making any distribution or payment to a shareholder, 21[R55] [who
is resident in India,] 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 22[R56] [***]
at the rates in force :
23[R57] Provided
that no such deduction shall
be made in the case of a shareholder, being an individual, if—
(a) the dividend
is paid by the company by an account payee cheque; and
(b) the amount of such dividend or,
as the case may be, the aggregate of the amounts 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 24[R58] [two
thousand five hundred] rupees:
Provided further that the provisions of this section shall not
apply to such income credited or paid to—
(a) the
Life Insurance Corporation of
(b) the General
Insurance Corporation of India (hereafter in this proviso referred to as the
Corporation) or to any of the four companies (hereafter in this proviso
referred to as such company), formed by virtue of the schemes framed under
sub-section (1) of section 16 of the General Insurance Business
(Nationalisation) Act, 1972 (57 of 1972), in respect of any shares owned by the
Corporation or such company or in which the Corporation or such company has
full beneficial interest;
(c) any other insurer
in respect of any shares owned by it or in which it has full beneficial
interest :]
25[R59] Provided also that no such deduction shall be
made in respect of any dividends referred to in section 115-O.]
26[R60] Interest other than “Interest on securities”.
27[R61] 194A. 28[R62] (1)
Any person29[R63] , not
being an individual or a Hindu undivided family, who is responsible for paying29[R64] to
a resident any income by way of interest other than income 30[R65] [by
way of interest on securities], shall, at the time of credit of such income to the
account of the payee31[R66] 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 :
32[R67] Provided
that an individual or a Hindu
undivided family, whose total sales, gross receipts or turnover from the
business or profession carried on by him exceed the monetary limits specified
under clause (a) or clause (b) of section 44AB during the
financial year immediately preceding the financial year in which such interest
is credited or paid, shall be liable to deduct income-tax under this section.]
33[R68] 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.]
(2) 34[R69] [Omitted by the Finance Act,
1992, w.e.f. 1-6-1992.]
(3) The provisions of sub-section (1) shall not apply—
35[R70] [(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[R71] [five
thousand rupees]:]
37[R72] Provided that in respect of the income credited or
paid in respect of—
(a) time 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
(b) time deposits with a co-operative society engaged in
carrying on the business of banking;
(c) deposits
with a public company which is formed and registered in India with the main
object of carrying on the business of providing long-term finance for construction
or purchase of houses in India for residential purposes 38[R73] [and
which is eligible for deduction under clause (viii) of sub-section (1) of section 36] 39[R74] [***],
40[R75] [* *
*] the aforesaid amount shall be computed with reference to the income credited
or paid by a branch of the banking company or the co-operative society or the
public company, as the case may be;]
(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
(f) such other institution, association or body 42[R77] [or
class of institutions, associations or bodies] which the Central Government
may, for reasons to be recorded in writing, notify43[R78] in
this behalf in the Official Gazette;
44[R79] (iv) to
such income credited or paid by a firm to a partner of the firm;]
(v) to such income credited or paid by a co-operative society 45[R80] [to
a member thereof or] to any other co-operative society;]
46[R81] (vi) to
such income credited or paid in respect of deposits under any scheme framed by
the Central Government and notified47[R82] by
it in this behalf in the Official Gazette;
48[R83] [(vii) to
such income credited or paid in respect of deposits (other than time deposits
made on or after the 1st day of July, 1995) 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);
(viia) to such income credited or paid in respect of,—
(a) deposits with a primary agricultural credit society or a
primary credit society or a co-operative land mortgage bank or a co-operative
land development bank;
(b) deposits (other
than time deposits made on or after the 1st day of July, 1995) with a
co-operative society, other than a co-operative society or bank referred to in
sub-clause (a), engaged in
carrying on the business of banking;]
49[R84] (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);]
50[R85] (ix) to
such income credited or paid by way of interest on the compensation amount
awarded by the Motor Accidents Claims Tribunal where the amount of such income
or, as the case may be, the aggregate of the amounts of such income credited or
paid during the financial year does not exceed fifty thousand rupees;]
51[R86] (x) to
such income which is paid or payable by an infrastructure capital company or
infrastructure capital fund or a public sector company in relation to a zero
coupon bond issued on or after the 1st day of June, 2005 by such company or
fund or public sector company.]
52[R87] Explanation
1.—For the purposes of clauses (i), (vii) and (viia), “time
deposits” means deposits (excluding recurring deposits) repayable on the expiry
of fixed periods.
Explanation 2.—For the purposes of clause (x), “infrastructure capital company” and “infrastructure capital fund”
shall have the meanings respectively assigned to them in
clauses (a) and (b) of Explanation 1 to clause (23G) of section 10.]
53[R88] (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.—[Omitted
by the Finance Act, 1992, w.e.f. 1-6-1992.]
54[R89] Winnings from lottery or crossword puzzle.
55[R90] 194B. 56[R91] The
person responsible for paying to any person any income by way of winnings from
any lottery or crossword puzzle 57[R92] [or card
game and other game of any sort] in an amount exceeding 58[R93] [five
thousand rupees] shall, at the time of payment thereof, deduct income-tax
thereon at the rates in force :
60[R95] [Provided 61[R96] [***]
that in a case where the winnings are wholly in kind or partly in cash and
partly in kind but the part in cash is not sufficient to meet the liability of
deduction of tax in respect of whole of the winnings, the person responsible
for paying shall, before releasing the winnings, ensure that tax has been paid
in respect of the winnings.]
62[R97] Winnings from horse race.
194BB. 63[R98] 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 racing 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 64[R99] [two
thousand five hundred rupees] shall, at the time of
payment thereof, deduct income-tax thereon at the rates in force.
66[R101] Payments to contractors and
sub-contractors.
67[R102] 194C. 68[R103] (1) Any person responsible for paying any sum to any resident
(hereafter in this section referred to as the contractor) for carrying out any
work69[R104] (including supply of labour for carrying out
any work) in pursuance of a contract between the contractor69[R105] and—
(a) the Central Government or any State Government; or
(b) any local authority; or
(c) any corporation established by or under a Central, State or
Provincial Act; or
(d) any company; 70[R106] [or]
71[R107] (e) any co-operative 72[R108] [society; or]]
73[R109] (f) any authority, constituted in India by
or under any law, engaged either for the purpose of dealing with and satisfying
the need for housing accommodation or for the purpose of planning, development
or improvement of cities, towns and villages, or for both; or
(g) any society registered under the Societies Registration Act,
1860 (21 of 1860) or under any law corresponding to that Act in force in any
part of
(h) any trust; or
(i) any
University established or incorporated by or under a Central, State or
Provincial Act and an institution declared to be a University under section 3
of the University Grants Commission Act, 1956 (3 of 1956); 74[R110] [or]
74[R111] (j) any firm,]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, 75[R112] [deduct an amount equal to—
(i) one per cent in
case of advertising,
(ii) in any other case 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 undertaken 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:
76[R113] Provided that an individual or a Hindu undivided family, whose total sales, gross
receipts or turnover from the business or profession carried on by him exceed
the monetary limits specified under clause (a) or clause (b)
of section 44AB during the financial year immediately preceding the financial
year in which such sum is credited or paid to the account of the
sub-contractor, shall be liable to deduct income-tax under this sub-section.]
77[R114] Explanation I.—For the purposes of sub-section (2), the
expression “contractor” shall also include a contractor who is carrying out any
work (including supply of labour for carrying out any work) in pursuance of a
contract between the contractor and the Government of a foreign State or a
foreign enterprise or any association or body established outside India.]
78[R115] [79[R116] Explanation II].—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.]
80[R117] Explanation III.—For the purposes of
this section, the expression “work” shall also include—
(a) advertising;
(b) broadcasting and telecasting including production of
programmes for such broadcasting or telecasting;
(c) carriage of goods and passengers by any mode of transport
other than by railways;
(d) catering.]
(3) No deduction shall be made under
sub-section (1) or sub-section (2) from—
81[R118] (i) the amount of any sum credited or paid
or likely to be credited or paid to the account of, or to, the contractor or
sub-contractor, if such sum does not exceed twenty thousand rupees:
Provided that where the aggregate of the amounts of
such sums credited or paid or likely to be credited or paid during the
financial year exceeds fifty thousand rupees, the person responsible for paying
such sums referred to in sub-section (1) or, as the case may be, sub-section
(2) shall be liable to deduct income-tax 82[R119] [under this section:]
83[R120] [Provided further that no
deduction shall be made under sub-section (2), from the amount of any sum
credited or paid or likely to be credited or paid during the previous year to
the account of the sub-contractor during the course of business of plying,
hiring or leasing goods carriages, on production of a declaration to the person
concerned paying or crediting such sum, in the prescribed form and verified in
the prescribed manner and within such time as may be prescribed, if such
sub-contractor is an individual who has not owned more than two goods carriages
at any time during the previous year:
Provided
also that the person responsible for paying any sum as aforesaid to the
sub-contractor referred to in the second proviso shall furnish to the prescribed
income-tax authority or the person authorised by it such particulars as may be
prescribed in such form and within such time as may be prescribed; or]
(ii) any sum credited or paid before the 1st day of June, 1972; 83a[R121] [or]
84[R122] (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.]
85[R123] Explanation.—For the purposes of clause (i),
“goods carriage” shall have the same meaning as in the Explanation to sub-section (7) of section 44AE.]
87[R126] Insurance commission.
88[R127] 194D. 89[R128] Any person responsible for paying to a resident
any income by way of remuneration or 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:]
90[R129] 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.]
91[R130] Payments to non-resident sportsmen or
sports associations.92[R131]
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.]
93[R132] Payments in respect
of deposits under National Savings Scheme, etc.94[R133]
194EE. The
person responsible for paying to any person any amount referred to in clause (a) of sub-section (2) of section
80CCA shall, at the time of payment thereof, deduct income-tax thereon at the
rate of twenty per cent :
Provided that no deduction shall be made under this section where the amount of
such payment or, as the case may be, the aggregate amount of such payments to
the payee during the financial year is less than two thousand five hundred rupees :
Provided further that nothing contained in this section shall
apply to the payment of the said amount to the heirs of the assessee.]
95[R134] Payments on account of repurchase of
units by Mutual Fund or Unit Trust of India.96[R135]
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.]
97[R136] Commission, etc., on the sale of lottery
tickets.98[R137]
194G. 99[R138] (1)] Any
person who is responsible for paying, on or after the 1st day of October, 1991
to any person, who is or has been stocking, distributing, purchasing or selling
lottery tickets, any income by way of commission, remuneration or prize (by
whatever name called) on such tickets in an amount exceeding one thousand
rupees shall, at the time of credit of such income to the account of the payee
or at the time of payment of such income 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 ten per cent.
(2)
1[R139] [***]
(3)
1[R140] [***]
Explanation.—For the purposes of this section, where any
income 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.]
2[R141] Commission or brokerage3[R142] .
194H. Any person, not
being an individual or a Hindu undivided family, who is responsible for paying,
on or after the 1st day of June, 2001, to a resident, any income by way of
commission (not being insurance commission referred to in section 194D) or brokerage,
shall, at the time of credit of such income to the account of the payee or at
the time of payment of such income 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 4[R143] [five] per cent :
Provided 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 two
thousand five hundred rupees :
5[R144] [Provided further that an individual or
a Hindu undivided family, whose total sales, gross receipts or turnover from
the business or profession carried on by him exceed the monetary limits
specified under clause (a) or
clause (b) of section 44AB
during the financial year immediately preceding the financial year in which
such commission or brokerage is credited or paid, shall be liable to deduct
income-tax under this section.]
Explanation.—For the purposes of
this section,—
(i) “commission or
brokerage” includes any payment received or receivable, directly or indirectly,
by a person acting on behalf of another person for services rendered (not being
professional services) or for any services in the course of buying or selling
of goods or in relation to any transaction relating to any asset, valuable
article or thing, not being securities;
(ii) the expression
“professional services” means services rendered by a person in the course of
carrying on a legal, medical, engineering or architectural profession or the
profession of accountancy or technical consultancy or interior decoration or
such other profession as is notified by the Board for the purposes of section
44AA;
(iii) the expression
“securities” shall have the meaning assigned to it in clause (h) of section 2 of the Securities
Contracts (Regulation) Act, 1956 (42 of 1956)6[R145] ;
(iv) where
any income 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.]
8[R147] 194-I. Any
person, not being an individual or a Hindu undivided family, who is responsible
for paying to
9[R148] [a resident] any income by way of rent10[R149] , 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, 11[R150] [deduct income-tax thereon at the rate of—
(a) fifteen per cent
if the payee is an individual or a Hindu undivided family; and
(b) twenty per cent
in other cases :]
Provided that no deduction shall be made under this section 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 aforesaid person to the account of, or to, the payee, does not exceed one
hundred and twenty thousand rupees :
12[R151] [Provided further that an individual or
a Hindu undivided family, whose total sales, gross receipts or turnover from
the business or profession carried on by him exceed the monetary limits
specified under clause (a) or
clause (b) of section 44AB
during the financial year immediately preceding the financial year in which
such income by way of rent is credited or paid, shall be liable to deduct
income-tax under this section.]
Explanation.—For the purposes of
this section,—
(i) “rent” means any
payment, by whatever name called, under any lease, sub-lease, tenancy or any other
agreement or arrangement for the use of any land or any building (including
factory building), together with furniture, fittings and the land appurtenant
thereto, whether or not such building is owned by the payee;
(ii) where any income
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.]
13[R152] Fees for professional or technical
services.14[R153]
15[R154] 194J. (1) Any person, not being an individual or a Hindu undivided
family, who is responsible for paying to a resident any sum by way of—
(a) fees for professional services, or
(b) fees for
technical services,shall, at
the time of credit of such sum 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 an amount equal to five per cent of such sum as
income-tax on income comprised therein :
Provided that no deduction shall be made under this section—
(A) from
any sums as aforesaid credited or paid before the 1st day of July, 1995; or
(B) where the amount
of such sum or, as the case may be, the aggregate of the amounts of such sums
credited or paid or likely to be credited or paid during the financial year by
the aforesaid person to the account of, or to, the payee, does not exceed—
(i) twenty thousand rupees, in the case of fees for professional
services referred to in clause (a),
or
(ii) twenty thousand rupees, in the case of fees for technical
services referred to in clause (b)
:
16[R155] Provided further that an individual or a Hindu undivided
family, whose total sales, gross receipts or turnover from the business or
profession carried on by him exceed the monetary limits specified under clause
(a) or clause (b) of section 44AB during the
financial year immediately preceding the financial year in which such sum by
way of fees for professional services or technical services is credited or
paid, shall be liable to deduct income-tax under this section
:]
17[R156] [Provided also that no individual or a Hindu
undivided family referred to in the second proviso shall be liable to deduct
income-tax on the sum by way of fees for professional services in case such sum
is credited or paid exclusively for personal purposes
of such individual or any member of Hindu undivided family.]
Explanation.—For the purposes of
this section,—
(a) “professional
services” means services rendered by a person in the course of carrying on
legal, medical, engineering or architectural profession or the profession of
accountancy or technical consultancy or interior decoration or
advertising or such other profession as is notified by the Board for the
purposes of section 44AA or of this section;
(b) “fees for technical services” shall have the same meaning as
in Explanation 2 to clause (vii) of sub-section (1) of section 9;
(c) where any sum
referred to in sub-section (1) 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 sum, such crediting shall be deemed to be credit of such sum
to the account of the payee and the provisions of this section shall apply
accordingly.
19[R159] Income in respect of units.20[R160]
194K. Where any income is payable to a resident in respect of units of a
Mutual Fund specified under clause (23D)
of section 10or of the Unit Trust of India, the person responsible for making
the payment shall, at the time of credit of such income to the account of 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 :
Provided that the provisions of this section shall not apply 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 responsible for making the payment to the account of, or to, the
payee does not exceed 21[R161] [two thousand five hundred] rupees
:
Provided further that the amount of one thousand*[R162] rupees shall be computed with reference to
the income credited or paid—
(a) in respect of a branch office of the Mutual Fund or of the
Unit Trust of India, as the case may be, and
(b) under a particular scheme under which the units have been
issued :
22[R163] Provided also that no deduction shall be made
under this section from any such income credited or paid on or after the 1st
day of April, 2003.]
Explanation.—For the purposes of this section,—
(a) “Unit Trust of
India” means the Unit Trust of India established under the Unit Trust of India
Act, 1963 (52 of 1963);
(b) where any income
as aforesaid 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.]
23[R164] Payment of compensation on acquisition
of capital asset.
194L. Any person responsible for paying to a resident any sum being in the
nature of compensation or the enhanced compensation or the consideration or the
enhanced consideration on account of compulsory acquisition, under any law for
the time being in force, of any capital asset shall, at the time of payment of
such sum in cash or by issue of a cheque or draft or by any other mode,
whichever is earlier, deduct an amount equal to ten per cent of such sum as
income-tax on income comprised therein :
Provided that no deduction shall be made under this section where the amount of
such payment or, as the case may be, the aggregate amount of such payments to a
resident during the financial year does not exceed one hundred thousand
rupees:]
24[R165] Provided further that no deduction shall be made under this section from any payment made
on or after the 1st day of June, 2000.]
25[R166] Payment of compensation
on acquisition of certain immovable property25a[R167]
194LA. Any person responsible for paying to a resident any sum, being in the
nature of compensation or the enhanced compensation or the consideration or the
enhanced consideration on account of compulsory acquisition, under any law for
the time being in force, of any immovable property (other than agricultural
land), shall, at the time of payment of such sum in cash or by issue of a
cheque or draft or by any other mode, whichever is earlier, deduct an amount
equal to ten per cent of such sum as income-tax thereon:
Provided that no deduction shall be made under this section where the amount of
such payment or, as the case may be, the aggregate amount of such payments to a
resident during the financial year does not exceed one hundred thousand rupees.
Explanation.—For the purposes of
this section,—
(i) “agricultural land” means agricultural land in
(ii) “immovable property” means any land (other than agricultural
land) or any building or part of a building.]
26[R168] 195. 27[R169] [(1) 28[R170] Any person responsible for paying to a non-resident,
not being a company, or to a foreign company, any interest 29[R171] [***] or any other sum chargeable under the
provisions of this Act (not being income chargeable under the head “Salaries” 30[R172] [***]) 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 :
31[R173] 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 :]
32[R174] [Provided further that no such
deduction shall be made in respect of any dividends referred to in section
115-O.]
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 33[R175] [***] 34[R176] [***] 35[R177] [***] 36[R178] [***] 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 37[R179] [Assessing] Officer to determine, 38[R180] [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.
40[R182] (3) Subject
to rules41[R183] 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 42[R184] [Assessing] Officer for the grant of a
certificate authorising him to receive such interest 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 42[R185] [Assessing] Officer before the expiry of such period, till such
cancellation.
(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.]
43[R186] Income payable “net of tax”.44[R187]
195A. 45[R188] [In a case other than that referred to in sub-section
(1A) of section 192, 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.]
46[R189] 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 or shares owned by it or in which it has full
beneficial interest, or any other income accruing or arising to it.]
47[R190] Income in respect of units of
non-residents.48[R191]
196A. (1) Any
person responsible for paying to a non-resident, not being a company, or to a foreign
company, any income in respect of units of a Mutual Fund specified under clause
(23D) of section 10 or of the
Unit Trust of India 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 per cent :
49[R192] Provided that no deduction shall be made under this section from any such income
credited or paid on or after the 1st day of April, 2003.]
(2) Notwithstanding anything contained in
sub-section (1), no deduction of tax shall be made from any income payable in
respect of units of the Unit Trust of India to a non-resident Indian or a
non-resident Hindu undivided family, where the units have been acquired from
the Unit Trust of India out of the funds in a Non-resident (External) Account
maintained with any bank in India or by remittance of funds in foreign
currency, in accordance, in either case, with the provisions of the Foreign
Exchange Regulation Act, 1973 (46 of 1973), and the rules made thereunder.
Explanation.—For the purposes of this section—
(a) 50[R193] “foreign currency” shall have the meaning
assigned to it in the Foreign Exchange Regulation Act, 1973 (46 of 1973);
(b) “non-resident Indian” shall have the meaning assigned to it
in clause (e) of section 115C;
(c) “Unit
Trust of India” means the Unit Trust of India established under the Unit Trust
of India Act, 1963 (52 of 1963);
(d) where
any income as aforesaid 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.]
51[R194] Income from units.52[R195]
196B. 53[R196] [Where any income in respect of units referred
to in section 115AB or by way of long-term capital gains arising from the
transfer of such units is payable to an Offshore Fund], 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 ten per cent.]
54[R197] Income from foreign currency bonds or
shares55[R198] of
Indian company.56[R199]
196C. 57[R200] Where any income by way of interest or dividends
in respect of58[R201] [bonds or Global Depository Receipts] referred
to in section 115AC or by way of long-term capital gains arising from the
transfer of such 58a[R202] [bonds or Global Depository Receipts] is
payable to a non-resident], 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
ten per cent :
59[R203] Provided that no such deduction shall be made in respect of any dividends
referred to in section 115-O]
60[R204] Income of Foreign Institutional
Investors from securities.61[R205]
196D. (1) Where
any income in respect of securities referred to in clause (a) of sub-section (1) of section 115AD
is payable to a Foreign Institutional Investor, 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 twenty per cent :
62[R206] Provided that
no such deduction shall be made in respect of any dividends referred to in
section 115-O.]
(2) No deduction of tax shall be made from any income, by way of
capital gains arising from the transfer of securities referred to in section
115AD payable to a Foreign Institutional Investor.]
Certificate
for deduction at lower rate.
197. 63[R207] (1) 64[R208] [Subject to rules made under sub-section (2A),
65[R209] [where, in the case of any income of any person
66[R210] [or sum payable to any person], 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, 67[R211] [194] 194A, 68[R212] [194C,] 194D, 68[R213] [194G] 69[R214] [, 194H] 70[R215] [, 194-I] 71[R216] [, 194J] 72[R217] [, 194K] 73[R218] [***] 74[R219] [, 194LA] and 195, the Assessing Officer is
satisfied] that the total income 75[R220] [***] of the recipient justifies the deduction
of income-tax 76[R221] [***] at any lower rates or no deduction of
income-tax 77[R222] [***], as the case may be, the 78[R223] [Assessing] Officer shall, on an application
made by the assessee in this behalf, give to him such certificate as may be
appropriate.
(2) Where any such certificate is given, the person responsible
for paying the income shall, until such certificate is cancelled by the 79[R224] [Assessing] Officer, deduct income-tax 80[R225] [***] at the rates specified in such
certificate or deduct no tax, as the case may be.
81[R226] (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.]
83[R228] No deduction to be made in certain
cases.
84[R229] 197A. 85[R230] (1) Notwithstanding anything contained in 86[R231] [***] section 194 87[R232] [***] 88[R233] [or section 194EE], 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 88a[R234] [***] section 194 89[R235] [90[R236] [***] or, as the case may be, section 194EE],
a declaration in writing in duplicate in the prescribed form and verified in
the prescribed manner to the effect that 91[R237] [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.]
92[R238] (1A) Notwithstanding anything contained in 93[R239] [section 193 or] section 194A or section 194K,
no deduction of tax shall be made under 94[R240] [any] of the said sections in the case of a
person (not being a company or a firm), if such person furnishes to the person
responsible for paying any income of the nature referred to in 93[R241] [section 193 or] section 194A or section 194K,
as the case may be, a declaration in writing in duplicate in the prescribed
form and verified in the prescribed manner to the effect that 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.]
95[R242] (1B) The
provisions of this section shall not apply where the amount of any income of
the nature referred to in sub-section (1) or sub-section (1A), as the case may
be, or the aggregate of the amounts of such incomes credited or paid or likely
to be credited or paid during the previous year in which such income is to be
included exceeds the maximum amount which is not chargeable to income-tax.]
96[R243] (1C) Notwithstanding
anything contained in section 193 or section 194 or section 194A or section
194EE or section 194K or sub-section (1B) of this section, no deduction of tax
shall be made in the case of an individual resident in India, who is of the age
of sixty-five years or more at any time during the previous year and is
entitled to a deduction from the amount of income-tax on his total income
referred to in section 88B, if such individual furnishes to the person
responsible for paying any income of the nature referred to in section 193 or
section 194 or section 194A or section 194EE or section 194K, as the case may
be, a declaration in writing in duplicate in the prescribed form97[R244] and verified in the prescribed manner to the
effect that 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) 98[R245] [or sub-section (1A)] 98a[R246] [or sub-section (1C)] shall deliver or cause
to be delivered to the 99[R247] [Chief Commissioner or Commissioner] one copy
of the declaration referred to in sub-section (1) 1[R248] [or sub-section (1A)] 2[R249] [or sub-section (1C)] 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 3[R250] [the foregoing provisions of this Chapter]
shall, for the purpose of computing the income of an assessee, be deemed to be
income received :
4[R251] Provided that the sum being the tax paid,
under sub-section (1A) of section 192 for the purpose of computing the income
of an assessee, shall not be deemed to be income
received.]
5[R252] 199. 6[R253] (1)] Any deduction made in
accordance with
7[R254] [the foregoing provisions of this Chapter]
and paid to the Central Government shall be treated as a payment of 8[R255] [tax] on behalf of the person from whose
income the deduction was made, or of the owner of the security 9 [R256] [, or depositor or owner of property or of
unit-holder] 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 10[R257] [***] 11[R258] [made under this Act for the assessment year for which such income is
assessable] :
(i) in a case where
such person or owner 13[R260] [or depositor or unit-holder] 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;
(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 :
14[R261] Provided further that where any property, deposit, security,
unit or share 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
credit shall be given to, each such person in the same proportion in which
rent, interest on deposit or on security or income in respect of unit or
dividend on share is assessable as his income.]]
15[R262] (2) Any
sum referred to in sub-section (1A) of section 192and paid to the Central
Government shall be treated as the tax paid on behalf of the person in respect
of whose income, such payment of tax has been made and credit shall be given to
him for the amount so paid on production of the certificate furnished under
section 203 in the assessment under this Act for the assessment year for which
such income is assessable.]
16[R263] (3) Where any deduction is made in accordance
with the foregoing provisions of this Chapter on or after the 1st day of April,
17[R264] [2006] and paid to the
Central Government, the amount of tax deducted and specified in the statement
referred to in section 203AA shall be treated as tax paid on behalf of the
persons referred to in sub-section (1) or, as the case may be, sub-section (2)
and credit shall be given to him for the amount so deducted in the assessment
made under this Act for the assessment year for which such income is assessable
without the production of certificate.]
200. 18[R265] (1)] 19[R266] Any person deducting any sum in accordance with 20[R267] [the foregoing provisions of this Chapter] shall
pay within the prescribed time, the sum so deducted to the credit of the
Central Government or as the Board directs.
21[R268] (2)
Any person being an employer, referred to in
sub-section (1A) of section 192 shall pay, within the prescribed time, the tax
to the credit of the Central Government or as the Board directs.]
22[R269] (3) Any person deducting any sum on or after
the 1st day of April, 2005 in accordance with the foregoing provisions of this
Chapter or, as the case may be, any person being an employer referred to in
sub-section (1A) of section 192 shall, after paying the tax deducted to the
credit of the Central Government within the prescribed time, prepare quarterly
statements for the period ending on the 30th June, the 30th September, the 31st
December and the 31st March in each financial year and deliver or cause to be
delivered to the prescribed income-tax authority or the person authorised by
such authority such statement in such form22a[R270] and verified in
such manner and setting forth such particulars and within such time as may be
prescribed.]
Consequences
of failure to deduct or pay.23[R271]
201. (1)
If any such person
24[R272] [referred to in section 200] 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 25[R273] [the whole or any part of the tax] 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 26[R274] [Assessing] Officer is satisfied that such
person or principal officer or company, as the case may be, has 27[R275] [without good and sufficient reasons] failed
to deduct and pay the tax.
28[R276] (1A) 29[R277] 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 30[R278] [the whole or any part of the tax] 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 31[R279] [twelve] 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, 32[R280] [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 33[R281] [recover] tax by deduction under 34[R282] [the foregoing provisions of this Chapter]
shall be without prejudice to any other mode of recovery.
35[R283] Certificate for tax deducted.
36[R284] 203. 37[R285] (1)] 38[R286] Every person deducting tax in accordance with 39[R287] [the foregoing provisions of this Chapter] 40[R288] [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.]
41[R289] [(2) Every
person, being an employer, referred to in sub-section (1A) of section 192
shall, within such period, as may be prescribed, furnish to the person in
respect of whose income such payment of tax has been made, a certificate to the
effect that tax has been paid to the Central Government, and specify the amount
so paid, the rate at which the tax has been paid and such other particulars as
may be prescribed.]
42[R290] [(3) Where the tax has been deducted or paid in
accordance with the foregoing provisions of this Chapter on or after the 1st
day of April, 43[R291] [2006], there shall be no requirement to furnish a certificate referred to in
sub-section (1) or, as the case may be, sub-section (2).]
44[R292] Tax deduction and collection account
number.
203A. (1) Every
person, deducting tax or collecting tax in accordance with the provisions of
this Chapter, who has not been allotted a tax deduction account number or, as
the case may be, a tax collection account number, shall, within such time as
may be prescribed45[R293] , apply to the Assessing Officer for the
allotment of a “tax deduction and collection account number”.
(2) Where a “tax deduction account number” or, as the case may be,
a “tax collection account number” or a “tax deduction and collection 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 or sub-section (3) of section 206C;
(b) in all certificates furnished under section 203 or
sub-section (5) of section 206C;
(c) in all the
returns, delivered in accordance with the provisions of section 206 or
sub-section (5A) or sub-section (5B) of section 206C to any income-tax
authority; and
(d) in all other documents pertaining to such transactions as
may be prescribed in the interests of revenue.]
46[R294] Furnishing of
statement of tax deducted.
203AA. The prescribed income-tax authority or the person
authorised by such authority referred to in sub-section (3) of section 200,
shall, within the prescribed time after the end of each financial year
beginning on or after the 1st day of April, 2005 prepare and deliver to every
person from whose income the tax has been deducted or in respect of whose income
the tax has been paid a statement in the prescribed form specifying the amount
of tax deducted or paid and such other particulars as may be prescribed.46a][R295]
Meaning of
“person responsible for paying”.
204. For the purposes of 47[R296] [the foregoing provisions of this Chapter] and
48[R297] section
285, the expression “person 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;
49[R298] (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 thereunder;]
(iii) 50[R299] [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.
51[R300] 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”52[R301] 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 53[R302] [the foregoing provisions of this Chapter],
the assessee shall not be called upon to pay the tax himself to the extent to
which tax has been deducted from that income.
54[R303] Persons deducting tax to furnish
prescribed returns.
55[R304] 206. 56[R305] (1)] The
prescribed person 57[R306] in the case of every office of Government,
the principal officer in the case of every company, the prescribed person 57[R307] 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 58[R308] [shall, within the prescribed time after the
end of each financial year, prepare and deliver or cause to be delivered] to
the prescribed income-tax authority59[R309] 60[R310] [or such other authority or agency as may be
prescribed], such returns61[R311] in such form and verified in such manner and
setting forth such particulars as may be prescribed:]
60[R312] Provided that the Board may, if it considers necessary or expedient so to do,
frame a scheme for the purposes of filing such returns with such other
authority or agency referred to in this sub-section.]
62[R313] (2) Without
prejudice to the provisions of sub-section (1), the person responsible for deducting
tax under the foregoing provisions of this Chapter other than 63[R314] [the
prescribed person in the case of every office of the Government and] the
principal officer in the case of every company may, at his option, deliver or
cause to be delivered such return to the prescribed income-tax authority in
accordance with such scheme as may be specified by the Board in this behalf, by
notification in the Official Gazette64[R315] , and subject to such conditions as may be specified
therein, on or before the prescribed time after the end of each financial year,
on a floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer
readable media (hereinafter referred to as the computer media) and in the
manner as may be specified in that scheme :
65[R316] Provided that the prescribed person in
the case of every office of Government and the principal officer in the case of
every company responsible for deducting tax under the foregoing provisions of
this Chapter shall, deliver or cause to be delivered, within the prescribed
time after the end of each financial year, such returns on computer media under
the said scheme.]
(3) Notwithstanding anything contained in any
other law for the time being in force, a return filed on computer media shall
be deemed to be a return for the purposes of this section and the rules made
thereunder and shall be admissible in any proceedings thereunder, without
further proof of production of the original, as evidence of any contents of the
original or of any fact stated therein.
(4) Where the Assessing Officer considers
that the return delivered or caused to be delivered under sub-section (2) is
defective, he may intimate the defect to the person responsible for deducting
tax or the principal officer in the case of a company, as the case may be, and
give him an opportunity of rectifying the defect within a period of fifteen
days from the date of such intimation or within such further period which, on
an application made in this behalf, the Assessing Officer may, in his
discretion, allow; and if the defect is not rectified within the said period of
fifteen days or, as the case may be, the further period so allowed, then,
notwithstanding anything contained in any other provision of this Act, such
return shall be treated as an invalid return and the provisions of this Act
shall apply as if such person had failed to deliver the return.]
66[R317] Furnishing of quarterly return in
respect of payment of interest to residents without deduction of tax.
206A.
(1)
Any banking company or
co-operative society or public company referred to in the proviso to clause (i) of
sub-section (3) of section 194A responsible for paying to a resident any income
not exceeding five thousand rupees by way of interest (other than interest on
securities), shall prepare quarterly returns for the period ending on the 30th
June, the 30th September, the 31st December and the 31st March in each
financial year and deliver or cause to be delivered to the prescribed income-tax
authority or the person authorised by such authority the quarterly returns as
aforesaid, in the prescribed form, verified in such manner and within such time
as may be prescribed, on a floppy, diskette, magnetic cartridge tape, CD-ROM or
any other computer readable media.
(2) The Central Government may, by
notification in the Official Gazette, require any person other than a person
mentioned in sub-section (1) responsible for paying to a resident any income
liable for deduction of tax at source under Chapter XVII, to prepare and
deliver or cause to be delivered quarterly returns in the prescribed form and
verified in such manner and within such time as may be prescribed, to the
prescribed income-tax authority or the person authorised by such authority on a
floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer
readable media.]
Person paying dividend to certain residents without
deduction of tax to furnish prescribed return.
206B. 67[R318] [Omitted
by the Finance (No. 2) Act, 1996, w.e.f. 1-10-1996.]
68[R319] BB.—Collection at source
Profits and gains from the business of trading in
alcoholic liquor, forest produce, scrap, etc.
69[R320] 206C. 70[R321] 71[R322] (1) Every person, being a seller shall, at the
time of debiting of the amount payable by the buyer to the account of the buyer
or at the time of receipt of such amount72[R323] 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:
|
Sl. No. |
Nature of goods |
Percentage |
|
(1) |
(2) |
(3) |
|
(i) |
Alcoholic Liquor for human consumption |
One per cent |
|
(ii) |
Tendu leaves |
Five per cent |
|
(iii) |
Timber obtained under a forest lease |
Two and one-half per cent |
|
(iv) |
Timber obtained by any mode other than under a forest lease |
Two and one-half per cent |
|
(v) |
Any other forest produce not being timber or tendu leaves |
Two and one-half per cent |
|
(vi) |
Scrap |
One per cent:] |
74[R325] Provided that every person, being a seller shall at the time, during the period
beginning on the 1st day of June, 2003 and ending on the day immediately
preceding the date on which the Taxation Laws (Amendment) Act, 2003 comes into
force, of debiting of the amount payable by the buyer to the account of the
buyer or 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 as it
stood immediately before the 1st day of June, 2003, a sum equal to the
percentage, specified in the corresponding entry in column (3) of the said
Table, of such amount as income-tax in accordance with
the provisions of this section as they stood immediately before the 1st day of
June, 2003.]]
75[R326] (1A) Notwithstanding
anything contained in sub-section (1), no collection of tax shall be made in
the case of a buyer, who is resident in India, if such buyer furnishes to the
person responsible for collecting tax, a declaration in writing in duplicate in
the prescribed form76[R327] and verified in the prescribed manner to the
effect that the goods referred to in column (2) of the aforesaid Table are to be
utilised for the purposes of manufacturing, processing or producing articles or
things and not for trading purposes.
(1B) The person responsible for collecting tax under this section
shall deliver or cause to be delivered to the Chief Commissioner or Commissioner
one copy of the declaration referred to in sub-section (1A) on or before the
seventh day of the month next following the month in which the declaration is
furnished to him.]
77[R328] (1C)
Every person, who grants a lease or a licence or enters into a contract or
otherwise transfers any right or interest either in whole or in part in any
parking lot or toll plaza or mine or quarry, to another person, other than a
public sector company (hereafter in this section referred to as “licensee or
lessee”) for the use of such parking lot or toll plaza or mine or quarry for
the purpose of business shall, at the time of debiting of the amount payable by
the licensee or lessee to the account of the licensee or lessee or at the time
of receipt of such amount from the licensee or lessee in cash or by the issue
of a cheque or draft or by any other mode, whichever is earlier, collect from
the licensee or lessee of any such licence, contract or lease 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:
Table
|
Sl. No. |
Nature of contract or licence or lease, etc. |
Percentage |
|
(1) |
(2) |
(3) |
|
(i) |
Parking lot |
Two per cent |
|
(ii) |
Toll plaza |
Two per cent |
|
(iii) |
Mining and quarrying |
Two per cent.] |
(2) The power to recover tax by collection under sub-section (1) 78[R329] [or sub-section (1C)] shall be without
prejudice to any other mode of recovery.
(3) Any person collecting any amount under sub-section (1) 78[R330] [or sub-section (1C)] shall pay within 79[R331] [the prescribed time] the amount so collected
to the credit of the Central Government or as the Board directs
:
80[R332] Provided that the person collecting tax
on or after the 1st day of April, 2005 in accordance with the foregoing
provisions of this section shall, after paying the tax collected to the credit
of the Central Government within the prescribed time, prepare quarterly
statements for the period ending on the 30th June, the 30th September, the 31st
December and the 31st March in each financial year and deliver or cause to be
delivered to the prescribed income-tax authority, or the person authorised by
such authority, such statement in such form and verified in such manner and
setting forth such particulars and within such time as may be prescribed 80a.[R333] ]
(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
:
80b[R334] [Provided that where any amount is collected in accordance with the provisions of
this section on or after the 1st day of April, 81[R335] [2006] and paid under sub-section (3) to the credit of the Central Government,
the amount of tax collected and specified in the statement referred to in the
second proviso to sub-section (5) 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 in the assessment made under this Act for
the assessment year for which such income is assessable without the production
of certificate.]
(5) Every person collecting tax in accordance with the provisions
of this section shall within 82[R336] [such period as may be prescribed83[R337] from
the time of debit] or receipt of the amount furnish to the buyer 84[R338] [or licensee or lessee] 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 83 [R339] :
85[R340] Provided that no certificate may be furnished in a
case where tax has been collected in accordance with the foregoing provisions
of this section on or after the 1st day of April, 86[R341] [2006] :
Provided further that the
prescribed income-tax authority or the person authorised by such authority
referred to in sub-section (3) shall, within the prescribed time after the end
of each financial year, prepare and deliver to the buyer referred to in
sub-section (1) or, as the case may be, to the licensee or lessee referred to
in sub-section (1C), a statement in the prescribed form86a[R342] specifying the
amount of tax collected and such other particulars as may be prescribed.]
87[R343] (5A) Every person collecting tax in accordance
with the provisions of this section shall 88[R344] [prepare within the prescribed time after the
end of each financial year], and deliver or cause to be delivered to the
prescribed income-tax authority89[R345] 90[R346] [or such other authority or agency as may be prescribed]
such returns in such form and verified in such manner and setting forth such
particulars and within such time as may be prescribed91[R347] :]
92[R348] Provided that the Board may, if it considers necessary or expedient so to do,
frame a scheme for the purposes of filing such returns with such other
authority or agency referred to in this sub-section.]
93[R349] (5B) Without
prejudice to the provisions of sub-section (5A), any person collecting tax,
other than in a case where the seller is a company, the Central Government or a
State Government, may at his option, deliver or cause to be delivered such
return to the prescribed income-tax authority in accordance with such scheme as
may be specified by the Board in this behalf, by notification in the Official
Gazette, and subject to such conditions as may be specified therein, on or
before the prescribed time after the end of each financial year, on a floppy,
diskette, magnetic cartridge tape, CD-ROM or any other computer readable media
(hereinafter referred to as the computer media) and in the manner as may be
specified in that scheme93a[R350] :
Provided that where the person collecting tax is a
company or the Central Government or a State Government, such person shall, in
accordance with the provisions of this section, deliver or cause to be
delivered, within the prescribed time after the end of each financial year,
such returns on computer media under the said scheme.
(5C)
Notwithstanding anything contained in any other law for the time being in
force, a return filed on computer media shall be deemed to be a return for the
purposes of sub-section (5A) and the rules made thereunder and shall be
admissible in any proceedings made thereunder, without further proof of
production of the original, as evidence of any contents of the original or of
any facts stated therein.
(5D) Where the Assessing Officer considers that
the return delivered or caused to be delivered under sub-section (5B) is
defective, he may intimate the defect to the person collecting tax and give him
an opportunity of rectifying the defect within a period of fifteen days from
the date of such intimation or within such further period which, on an
application made in this behalf, the Assessing Officer may, in his discretion,
allow; and if the defect is not rectified within the said period of fifteen
days or, as the case may be, the further period so allowed, then,
notwithstanding anything contained in any other provision of this Act, such
return shall be treated as an invalid return and the provisions of this Act
shall apply as if such person had failed to deliver the return.]
(6) Any person responsible for collecting the
tax who fails 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 94[R351] [one] 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.]
95[R352] [(9) Where
the Assessing Officer is satisfied that the total income of the buyer 96[R353] [or licensee or lessee] justifies the
collection of the tax at any lower rate than the relevant rate specified in
sub-section (1) 96[R354] [or sub-section (1C)], the Assessing Officer
shall, on an application97[R355] made by the buyer 98[R356] [or licensee or lessee] in this behalf, give
to him a certificate for collection of tax at such lower rate than the relevant
rate specified in sub-section (1) 98[R357] [or sub-section (1C)].
(10) Where a certificate under sub-section (9) is given, the person
responsible for collecting the tax shall, until such certificate is cancelled
by the Assessing Officer, collect the tax at the rates specified in such
certificate.
(11) 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 (9) and the conditions subject to which such
certificate may be granted and providing for all other matters connected
therewith.]
99[R358] Explanation.—For the purposes of this section,—
(a) “buyer” means a
person who obtains in any sale, by way of auction, tender or any other mode,
goods of the nature specified in the Table in sub-section (1) or the right to
receive any such goods but does not include,—
1[R359] [(i) a public sector company, the Central
Government, a State Government, and an embassy, a high commission, legation,
commission, consulate and the trade representation, of a foreign State and a
club; or
(ii) a buyer in the retail sale of such goods purchased by him
for personal consumption;]
2[R360] [(b) “scrap” means waste and scrap from the
manufacture or mechanical working of materials which is definitely not usable
as such because of breakage, cutting up, wear and other reasons;
(c) “seller” means
the Central Government, a State Government or any local authority or
corporation or authority established by or under a Central, State or Provincial
Act, or any company or firm or co-operative society and also includes an
individual or a Hindu undivided family whose total sales, gross receipts or
turnover from the business or profession carried on by him exceed the monetary
limits specified under clause (a)
or clause (b) of section 44AB
during the financial year immediately preceding the financial year in which the
goods of the nature specified in the Table in sub-section (1) are sold.]]
3[R361] Tax collection
account number.
206CA. (1) Every
person collecting tax in accordance with the provisions of section 206C, shall,
within such time as may be prescribed4[R362] , apply to the Assessing Officer for the
allotment of a tax-collection account number5[R363] .
(2) Where a tax collection 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 sub-section (3) of section 206C;
(b) in all certificates furnished under sub-section (5) of
section 206C;
(c) in all the returns delivered in accordance with the
provisions of sub-section (5A) or sub-section (5B) of section 206C to any
income-tax authority; and
(d) in all other documents pertaining to such transactions as may
be prescribed in the interest of revenue:]
6[R364] Provided that the provisions of this section shall not
apply on or after the 1st day of October, 2004.]
C.—Advance
payment of tax
7[R365] 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”8[R366] .]
9[R367] 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 10[R368] [five thousand] rupees or more.]
209. 11[R369] [(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 12[R370] [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.]
13[R371] (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 14[R372] [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
15[R373] (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;]
16[R374] (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 17[R375] [Assessing] Officer shall, for making an order
under 18[R376] [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 19[R377] [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 assessee.
20[R378] 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.]
21[R379] 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 of
any previous year 22[R380] [***], 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 form23[R381] 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.]
24[R382] Instalments of advance tax and due
dates.25[R383]
211. 26[R384] [(1) Advance
tax on the current income calculated in the manner laid down in section 209 shall
be payable by—
(a) all the
companies, who are liable to pay the same, in four instalments during each
financial year and the due date of each instalment and the amount of such
instalment shall be as specified in Table I below :
Table I
|
Due date of instalment |
Amount payable |
|
On or before the
15th June |
Not less than
fifteen per cent of such advance tax. |
|
On or before the
15th September |
Not less than forty-five
per cent of such advance tax, as reduced by the amount, if any, paid in the
earlier instalment. |
|
On or before the
15th December |
Not less than
seventy-five per cent of such advance tax, as reduced by the amount or amounts,
if any, paid in the earlier instalment or instalments. |
|
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. |
(b) all the assessees
(other than companies), who are liable to pay the same, in three instalments
during each financial year and the due date of each instalment and the amount
of such instalment shall be as specified in Table II below :
Table II
|
Due date of instalment |
Amount payable |
|
On or before the
15th September |
Not less than
thirty per cent of such advance tax. |
|
On or before the
15th December |
Not less than sixty
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.]
212. [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1988.]
213. 27[R385] [Omitted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.]
28[R386] Interest payable by Government.
29[R387] 214. (1) The Central
Government shall pay simple interest at 30[R388] [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 31[R389] [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 :
32[R390] 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.]
33[R391] (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 34[R392] [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 in a case where the
interest is reduced, the 35[R393] [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.
36[R394] (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.]
37[R395] 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.]
38[R396] 215. 39[R397] [40[R398] (1) Where, in any financial year, an assessee
has paid 41[R399] [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 42[R400] [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 :]
43[R401] 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” had been substituted.]
44[R402] (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 provision 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.]
45[R403] (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 46[R404] [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 47[R405] [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 prescribed48[R406] , the 47[R407] [Assessing] Officer may reduce or waive the interest payable by
the assessee under this section.
49[R408] (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 50[R409] [, section 194C] 51[R410] [, section 194D] 52[R411] [, 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.]
53[R412] (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.]
54[R413] Interest payable by assessee in case of
under-estimate, etc.
55[R414] 216. Where, on making the regular
assessment, the 56[R415] [Assessing] Officer finds that any assessee has—
57[R416] (a)
under 58[R417] [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 59[R418] [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.
60[R419] 217. 61[R420] (1) Where,
on making the regular assessment, 62[R421] [the 63[R422] [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 64[R423] [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 65[R424] [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.]
66[R425] [(1A) Where, on making the regular assessment,
the 67[R426] [Assessing] Officer finds that 68[R427] [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 69[R428] [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 70[R429] [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.]
(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. 71[R430] 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.]
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 a payment of tax
in respect of the income of the period which would be the previous year for an
assessment for the assessment year next following the financial year in which
it was payable, and credit therefore shall be given to the assessee in the
regular assessment.
D.—Collection
and recovery
When tax
payable and when assessee deemed in default.
73[R432] 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 74[R433] [thirty] days of the service of the notice at
the place and to the person mentioned in the notice :
Provided that, where the 75[R434] [Assessing] Officer has any reason to believe
that it will be detrimental to revenue if the full period of 76[R435] [thirty] days aforesaid is allowed, he may,
with the previous approval of the 77[R436] [Joint Commissioner], direct that the sum
specified in the notice of demand shall be paid within such period being a
period less than the period of 78[R437] [thirty] days aforesaid, as may be specified
by him in the notice of demand.
79[R438] (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 80[R439] [81[R440] [one] 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 :]
82[R441] [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 83[R442] [or an order of the Settlement Commission
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 :]
84[R443] [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.]
85[R444] (2A) Notwithstanding anything
contained in sub-section (2), 86[R445] [the 87[R446] [Chief Commissioner or Commissioner] may]
reduce or waive the amount of interest 88[R447] [paid or] payable by an assessee under the
said sub-section if 89[R448] [he is satisfied] that—
(i) payment of such amount 90[R449] [has caused or] would cause genuine hardship
to the assessee ;
(ii) default in the payment of the amount on which interest 90[R450] [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)91[R451] , on an application made by the assessee
before the expiry of the due date under sub-section (1), the 92[R452] [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 defaults 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 93[R453] [or section 246A] the 94[R454] [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 94[R455] [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.
95[R456] 221. 96[R457] [(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 arrears97[R458] 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 98[R459] [Assessing] Officer may direct99[R460] , and in the case of a continuing default,
such further amount or amounts as the 99a[R461] [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 :
1[R462] [Provided further that where the
assessee proves to the satisfaction of the 2[R463] [Assessing] Officer that the default was for good and sufficient
reasons3[R464] , no penalty shall be levied under this
section.]
4[R465] 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. 5[R466] [(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 form6[R467] 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.
7[R468] 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.]
8[R469] [(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.]
9[R470] 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 manner10[R471] 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.]
11[R472] 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.]
12[R473] 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 reduced13[R474] 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. 14[R475] (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 15[R476] [Assessing] Officer 16[R477] [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)17[R478] , shall be exempt from any requisition made
under this sub-section.
(3) (i)
The 18[R479] [Assessing] Officer 19[R480] [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 due20[R481] to the assessee or any person who holds or
may subsequently hold money21[R482] for or on account of the assessee to pay to
the 22[R483] [Assessing] Officer 23[R484] [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 22[R485] [Assessing] Officer 23[R486] [or Tax Recovery Officer], and in the case of
a joint account to all the joint holders at their last addresses known to the 22[R487] [Assessing] Officer 23[R488] [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 24[R489] [Assessing] Officer 25[R490] [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 24[R491] [Assessing] Officer 25[R492] [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 24[R493] [Assessing] Officer 25[R494] [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 24[R495] [Assessing] Officer 25[R496] [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 24[R497] [Assessing] Officer 25[R498] [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 24[R499] [Assessing] Officer 25[R500] [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.
26[R501] [(5) The 26a[R502] [Assessing] Officer 26b[R503] [or Tax Recovery Officer] may, if so
authorised by the 27[R504] [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
228. 28[R505] [Omitted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]
29[R506] Recovery 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 30[R507] [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.
31[R508] [(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.
32[R509] 230. 33[R510] [(1) Subject
to such exceptions as the Central Government may, by notification in the
Official Gazette, specify in this behalf, no person,—
(a) who is not domiciled in
(b) who has come to
(c) who has income derived from any source in
(i) an undertaking in the prescribed form35 [R512] from his employer; or
(ii) through
whom such person is in receipt of the income,to the effect that tax payable by such person who is
not domiciled in India shall be paid by the employer referred to in clause (i) or the person referred to in
clause (ii), and the prescribed
authority34[R513] shall, on receipt of the undertaking,
immediately give to such person a no objection certificate36[R514] , for leaving India:
Provided that
nothing contained in sub-section (1) shall apply to a person who is not
domiciled in
(1A) Subject to such exceptions as the Central
Government may, by notification in the Official Gazette, specify in this
behalf, every person, who is domiciled in India at the time of his departure
from India, shall furnish, in the prescribed form37[R515] to the income-tax authority or such other
authority as may be prescribed38[R516] —
(a) the
permanent account number allotted to him under section 139A:
Provided that
in case no such permanent account number has been allotted to him, or his total
income is not chargeable to income-tax or he is not required to obtain a
permanent account number under this Act, such person shall furnish a
certificate in the prescribed form;
(b) the purpose of his visit outside
(c) the estimated period of his stay outside
39[R517] Provided that no person—
(i) who is domiciled in
(ii) in respect of whom
circumstances exist which, in the opinion of an income-tax authority render it
necessary for such person to obtain a certificate under this section, shall
leave the territory of India by land, sea or air unless he obtains a
certificate from the income-tax authority stating that he has no liabilities
under this Act, or the Wealth-tax Act, 1957 (27 of 1957), or the Gift-tax Act,
1958 (18 of 1958), or the Expenditure-tax Act, 1987 (35 of 1987), 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*[R518] that no income-tax authority shall make it
necessary for any person who is domiciled in India to obtain a certificate
under this section unless he records the reasons therefor and obtains the prior
approval of the Chief Commissioner of Income-tax.]
(2) If 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) 40[R519] [or the first proviso to sub-section (1A)]
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 41[R520] [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.
42[R521] (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.
Restrictions
on registration of transfers of immovable property in certain cases.
230A. 43[R522] [Omitted
by the Finance Act, 2001, w.e.f. 1-6-2001.]
Period for
commencing recovery proceedings.
231. 44[R523] [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 45[R524] [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.
234. 46[R525] [Omitted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]
47[R526] F.—Interest chargeable in certain cases48[R527]
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 shall49[R528] be liable to pay simple interest at the rate
of 50[R529] [one] 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 51[R530] [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.
52[R531] 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 53[R532] [or section 153A], the assessment so made shall be regarded as a regular assessment for
the purposes of this section.
Explanation 4.—54[R533] [* * *]
(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 55[R534] [or section 153A] issued 56[R535] [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 57[R536] [one] 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 of the
re-assessment or re-computation under section 147 58[R537] [or reassessment under section 153A],on the amount by which the tax on the total income
determined on the basis of such re-assessment or re-computation exceeds the tax
on the total income determined 59[R538] [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 155or 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 years.]
61[R540] Interest for defaults 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 shall62[R541] be liable to pay simple interest at the rate
of 63[R542] [one] 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
64[R543] [to the date of determination of total income
under sub-section (1) of section 143 65[R544] [and where a regular assessment is made, to
the date of such 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.
66[R545] Explanation 1.—In this section, “assessed tax” means 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 67[R546] [or section 153A], the assessment so made shall be regarded as a regular assessment for
the purposes of this section.
68[R547] 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 69[R548] [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 70[R549] [or section 153A], the amount on which interest was payable under sub-section (1) is
increased, the assessee shall be liable to pay simple interest at the rate of 71[R550] [one] per cent for every month or part of a
month comprised in the period commencing on the day following 72[R551] [the date of determination of total income
under sub-section (1) of section 143 73[R552] [and where a regular assessment is made as is
referred to in sub-section (1) following the date of such regular assessment]]
and ending on the date of the re-assessment or re-computation under section
147 73a[R553] [or section 153A], 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 72[R554] [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) of 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 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 years.]
75[R556] Interest for deferment of advance tax.
234C. (1) 76[R557] Where in any financial year,—
(a) the company which is liable to pay advance tax under section
208 has failed to pay such tax or—
(i) the
advance tax paid by the company on its current income on or before the 15th day
of June is less than fifteen 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 September is
less than forty-five 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 seventy-five per cent of the tax due on the returned income, then, the
company shall77[R558] be liable to pay simple interest at the rate
of 78[R559] [one] per cent per month for a period of three
months on the amount of the shortfall from fifteen per cent or forty-five per
cent or seventy-five per cent, as the case may be, of the tax due on the
returned income;
(ii) the
advance tax paid by the company on its current income on or before the 15th day
of March is less than the tax due on the returned income, then, the company
shall be liable to pay simple interest at the rate of 78[R560] [one] per cent on the amount of the shortfall
from the tax due on the returned income:
Provided that if the advance tax paid by the company
on its current income on or before the 15th day of June or the 15th day of
September, is not less than twelve per cent or, as the case may be, thirty-six
per cent of the tax due on the returned income, then, it shall not be liable to
pay any interest on the amount of the shortfall on those dates;
(b) the
assessee, other than a company, who is liable to pay advance tax under section
208 has failed to pay such tax or,—
(i) the
advance tax paid by the assessee on his current income on or before the 15th
day of September is less than thirty 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 sixty per cent of the tax due on the returned income,
then, the assessee shall be liable to pay simple interest at the rate of 78[R561] [one] per cent per month for a period of three
months on the amount of the shortfall from thirty per cent or, as the case may
be, sixty per cent of the tax due on the returned income;
(ii) the
advance tax paid by the assessee on his current income on or before the 15th
day of March is less than the tax due on the returned income, then, the
assessee shall be liable to pay simple interest at the rate of 79[R562] [one] per cent on the amount of the shortfall from
the tax due on the returned income :]
80[R563] 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 81[R564] [remaining installments of advance tax which
are due or where no such installments are due], by the 31st day of March of the
financial year:]
82[R565] Provided further 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 increase in the rate of surcharge
under section 2 of the Finance Act, 2000 (10 of 2000), as amended by the
Taxation Laws (Amendment) Act, 2000 (1 of 2001), and the assessee has paid the
amount of shortfall, on or before the 15th day of March, 2001 in respect of the
installment of advance tax due on the 15th day of June, 2000, the 15th day of
September, 2000 and the 15th day of December, 2000 :]
83[R566] Provided also 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 increase in the rate of surcharge
under section 2 of the Finance Act, 2000 (10 of 2000) as amended by the
Taxation Laws (Amendment) Act, 2001 (4 of 2001) and the assessee has paid the
amount of shortfall on or before the 15th day of March, 2001 in respect of the
installment of advance tax due on the 15th day of June, 2000, the 15th day of
September, 2000 and 15th day of December, 2000.]
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
84[R567] [or payable], as reduced by 85[R568] [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.]]
86[R569] Interest on excess refund.
234D. (1) Subject
to the other provisions of this Act, where any refund is granted to the
assessee under sub-section (1) of section 143, and—
(a) no refund is due on regular assessment; or
(b) the
amount refunded under sub-section (1) of section 143 exceeds the amount
refundable on regular assessment,the
assessee shall be liable to pay simple interest at the rate of 87[R570] [one-half] per cent on the whole or the excess
amount so refunded, for every month or part of a month comprised in the period
from the date of grant of refund to the date of such regular assessment.
(2) 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 refund granted under sub-section (1) of section
143 is held to be correctly allowed,
either in whole or in part, as the case may be, then, the interest chargeable,
if any, under sub-section (1) shall be reduced accordingly.
Explanation.—Where, in relation to an assessment year, an assessment is made for the first time under section 147 or section 153A, the assessment so made shall be regarded as a regular assessment for the purposes of this section.]
[R1]For clarification regarding tax deduction at source under Chapter XVII clarifying that payment of any sum shall be liable for deduction of tax only under one section, see Circular No. 720, dated 30-8-1995
[R2]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-6-1988
[R3]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002
[R4]See also Circular No. 306, dated 19-6-1981 and Circular No. 141, dated 23-7-1974
[R5]“(1)” omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
[R6]Sub-section (2) omitted by the Finance Act, 1965, w.e.f. 1-4-1965
[R7]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003
[R8]See also Letter [F. No. 12/71/65-IT(B)(Extract)], dated 5-3-1966, 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. 285, dated 21-10-1980, Circular No. 586, dated 28-11-1990, Circular No. 707, dated 11-7-1995, Circular No. 756, dated 10-10-1997, Circular No. 758, dated 7-11-1997, Circular No. 761, dated 13-1-1998, Circular No. 9/2003, dated 18-11-2003 and Circular No. 6/2004, dated 6-12-2004
[R9]See rules 26A, 26B, 28(1), 28AA, 28AB, 30, 31, 31A, 31AB, 33, 36 and 37 and Form Nos. 12B, 12BA, 13, 16, 16AA, 24, 24Q and 26AS
[R10]“and super-tax” omitted by the Finance Act, 1965, w.e.f. 1-4-1965
[R11]“and average rate of super-tax respectively” omitted by the Finance Act, 1965, w.e.f. 1-4-1965
[R12]Substituted for “rates of tax in force” by the Finance Act, 1968, w.e.f. 1-4-1968
[R13]Sub-sections (1A) and (1B) inserted by the Finance Act, 2002, w.e.f. 1-6-2002
[R14]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.
[R15]See rule 26A and Form No. 12B
[R16]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987
[R17]Substituted for “public sector undertaking” by the Finance Act, 1989, w.e.f. 1-6-1989
[R18]Inserted by the Finance Act, 1989, w.e.f. 1-6-1989
[R19]Substituted by the Finance (No. 2) Act, 1998, w.e.f. 1-8-1998. Prior to its substitution, sub-section (2B) was inserted by the Finance Act, 1987, w.e.f. 1-6-1987
[R20]See rule 26B
[R21] Inserted by the Finance Act, 2001, w.e.f. 1-6-2001
[R22]See rule 26A and Form Nos. 12BA and 16
[R23]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002
[R24]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987. Earlier “or sub-section (2)” was omitted by the Finance Act, 1965, w.e.f. 1-4-1965
[R25]See rule 33
[R26]Substituted for “income-tax and super-tax” by the Finance Act, 1965, w.e.f. 1-4-1965
[R27]See rules 26 and 115
[R28]Explanation omitted by the Finance Act, 1965, w.e.f. 1-4-1965
[R29]See rules 28(1), 28AA, 28AB, 29C, 30, 31, 31A, 31AB, 37 and 37A and Form Nos. 13, 15G, 15H, 16A, 26, 26Q, 26AS and 27.
[R30]See also Circular No. 2, dated 6-2-1969, Circular No. 28P (XXXIV-4), dated 16-5-1966, Circular No. 735, dated 30-1-1996, Circular No. 741, dated 18-4-1996, Circular No. 745, dated 19-7-1996, Circular No. 3/2002, dated 28-6-2002, Circular No. 11/2002, dated 22-11-2002, Circular No. 2/2003, dated 11-3-2003, Circular No. 3/2003, dated 11-3-2003 and Circular No. 4/2004, dated 13-5-2004
[R31]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003
[R32]Substituted for ‘chargeable under the head “Interest on securities” ’ by the Finance Act, 1988, w.e.f. 1-4-1989
[R33]Substituted for “at the time of payment” by the Finance Act, 1989, w.e.f. 1-6-1989.
[R34]“and super-tax” omitted by the Finance Act, 1965, w.e.f. 1-4-1965
[R35]Omitted by the Finance Act, 1992, w.e.f. 1-6-1992. Prior to omission, first proviso was inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991
[R36]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.
[R37]Inserted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1965, w.e.f. 4-12-1965
[R38]Inserted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1965, w.e.f. 4-12-1965
[R39]Inserted by the Finance Act, 1978, w.e.f. 1-4-1978.
[R40]Omitted by the Finance Act, 1988, w.e.f. 1-4-1989
[R41]Inserted by the Finance Act, 1970, w.e.f. 1-4-1970
[R42]Substituted by the Finance Act, 1986, w.e.f. 1-6-1986. Earlier it was inserted by the Finance Act, 1970, w.e.f. 1-4-1970
[R44]Explanation omitted by the Finance Act, 1987, w.e.f. 1-4-1987. Omitted Explanation was inserted by the Finance Act, 1986, w.e.f. 1-4-1986.
[R45]Omitted by the Finance Act, 1997, w.e.f.
1-6-1997. Prior to its omission, clause (iiia), as inserted by the
Finance Act, 1982, w.e.f. 1-6-1982, read as under :
“(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 notification in the Official Gazette, specify in this behalf;”
[R46]Substituted by the Finance Act, 1997, w.e.f.
1-6-1997. Prior to its substitution, clause (iv), as inserted by the
Finance Act, 1966, w.e.f. 1-4-1966, read as under :
“(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;”
[R47]Inserted by the Finance Act, 1984, w.e.f. 1-6-1984
[R48]Substituted for “one thousand rupees” by the Finance Act, 1989, w.e.f. 1-6-1989
[R49]Clauses (vi), (vii) and (viii) inserted by the Finance Act, 2002, w.e.f. 1-6-2002
[R50]Inserted by the Finance Act, 1989, w.e.f. 1-6-1989. Original Explanation, which was inserted by the Finance Act, 1965, w.e.f. 1-4-1965, was omitted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967
[R51]Figure “1” omitted by the Finance Act, 1992, w.e.f. 1-6-1992. Earlier, Explanation was renumbered as Explanation 1 by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991
[R52]Prior to omission, Explanation 2, as
inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991, read as under :
‘Explanation 2.—For the purposes of this section, the expression “scheduled bank” shall have the meaning assigned to it in clause (ii) of the Explanation to clause (viia) of sub-section (1) of section 36
[R53]See also Circular No. P(XXI-16), dated 8-1-1965, Circular No. 3P(XXI-19), dated 1-5-1966 and Circular No. 2/2003, dated 11-3-2003
[R54]See rules 27, 28(1), 28AA, 28AB, 29, 29C, 30, 31, 31A, 31AB, 37 and 37Aand Form Nos. 13, 15G, 15H, 16A, 26, 26AS, 26Q and 27
[R55]Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991
[R56]“and super-tax” omitted by the Finance Act, 1965, w.e.f. 1-4-1965
[R57]Substituted for the first and second provisos
by the Finance Act, 2002, w.e.f. 1-6-2002. Prior to their substitution, the
first proviso, as inserted by the Finance (No. 2) Act, 1977, w.e.f. 1-10-1977,
later on substituted by the Finance Act, 1984, w.e.f. 1-6-1984 and amended by
the Finance Act, 1987, w.e.f. 1-6-1987 and Finance (No. 2) Act, 1991, w.e.f.
1-10-1991, and the second proviso, as inserted by the Finance Act, 1997, w.e.f.
1-6-1997, read as under :
“Provided that no such deduction shall be made in the
case of a shareholder, being an individual, of a company in which the public
are substantially interested, if—
(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 amounts 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 two
thousand five hundred rupees :
Provided further that no such deduction shall be made in
respect of any dividends referred to in section 115-O.”
Prior to its omission by the Finance Act, 1993, w.e.f. 1-6-1993, second proviso was amended by the Finance Act, 1965, w.e.f. 1-4-1965, the Finance (No. 2) Act, 1977, w.e.f. 1-10-1977 and the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R58]Substituted for “one thousand” by the Finance Act, 2003, w.r.e.f. 1-8-2002
[R59]Inserted by the Finance Act, 2003, w.r.e.f. 1-4-2003
[R60]Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967
[R61] 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-IT (A-II)], dated 23-9-1968, Letter [F. No. 12/113/68-IT(A-II)], dated 28-10-1968, Letter [F. No. 275/109/92-IT(B)], dated 21-9-1994, Circular No. 526, dated 5-12-1988, Circular No. 626, dated 12-2-1992, Circular No. 643, dated 23-1-1993, Circular No. 647, dated 22-3-1993, Circular No. 715, dated 8-8-1995, Circular No. 716, dated 9-8-1995, Circular No. 9/2002, dated 11-9-2002, Circular No. 3/2002, dated 28-6-2002, Circular No. 11/2002, dated 22-11-2002, Circular No. 12/2002, dated 22-11-2002, Circular No. 2/2003, dated 11-3-2003 and Circular No. 3/2003, dated 11-3-2003
[R62] See rules 28(1), 28AA, 28AB, 29C, 30, 31, 31A, 31AB and 37 and Form Nos. 13, 15G, 15H, 16A, 26, 26AS and 26Q
[R63]For the meaning of the expressions “any person” and “responsible for paying
[R64]For the meaning of the expressions “any person” and “responsible for paying”
[R65]Substituted for ‘chargeable under the head “Interest on securities” ’ by the Finance Act, 1988, w.e.f. 1-4-1989
[R66]For the meaning of the expression “at the time of credit . . . account of the payee”
[R67]Inserted by the Finance Act, 2002, w.e.f.
1-6-2002. Earlier the proviso was omitted by the Finance Act, 1992, w.e.f.
1-6-1992 and prior to omission, it read as under :
“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.”
[R68]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.
[R69]Prior to omission, sub-section (2) was amended by the Finance Act, 1968, w.e.f. 1-4-1968
[R70]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) of section 20
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
[R71]Substituted for “two thousand five hundred rupees” by the Finance Act, 2000, w.e.f. 1-6-2000. Earlier “two thousand five hundred rupees” was substituted for “one thousand rupees” by the Finance Act, 1987, w.e.f. 1-6-1987
[R72]Substituted by the Finance (No. 2) Act, 1996,
w.e.f. 1-10-1996. Prior to its substitution, proviso, as inserted by the
Finance Act, 1995, w.e.f. 1-7-1995, read as under :
‘Provided that in respect of the income credited or paid in respect of time 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, the provisions of this clause shall have effect as if for the words “two thousand five hundred rupees”, the words “ten thousand rupees” had been substituted and the aforesaid amount shall be computed with reference to the income credited or paid by a branch of the banking company or the co-operative society, as the case may be;’
[R73]Inserted by the Finance Act, 2000, w.e.f. 1-4-2000
[R74]Words “and which is for the time being approved by the Central Government for the purpose of clause (viii) of sub-section (1) of section 36” omitted by the Finance Act, 1999, w.e.f. 1-4-2000.
[R75]The following portion in the proviso omitted
by the Finance Act, 2001, w.e.f. 1-6-2001 :
‘the provisions of this clause shall have effect as if for the words “two thousand five hundred rupees”, the words “ten thousand rupees” had been substituted and’
[R76]Clause (ii) omitted by the Finance Act,
1999, w.e.f. 1-4-2000. Prior to its omission, clause (ii) read as under :
“(ii) to such income credited or paid before the 1st day of October, 1967;
[R77]Inserted by the Finance Act, 1968, w.e.f. 1-4-1968
[R79]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
[R80]Inserted by the Finance (No. 2) Act, 1971, w.e.f. 1-4-1971.
[R81]Inserted by the Finance Act, 1970, w.e.f. 1-4-1971
[R83]Substituted for clause (vii) by the Finance Act, 1995, w.e.f. 1-7-1995. Prior to its substitution, clause (vii) was amended by the Finance Act, 1992, w.e.f. 1-6-1992, and the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991
[R84]Inserted by the Finance Act, 1975, w.e.f. 1-4-1975
[R85]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003
[R86] Inserted by the Finance Act, 2005, w.e.f. 1-6-2005
[R87]Explanation 1 and Explanation 2 substituted for Explanation
by the Finance Act, 2005, w.e.f. 1-6-2005. Prior to its substitution, Explanation,
as inserted by the Finance Act, 1995, w.e.f. 1-7-1995, read as under :
‘Explanation.—For the purposes of clauses (i), (vii) and (viia), “time deposits” means deposits (excluding recurring deposits) repayable on the expiry of fixed periods.
[R88]Inserted by the Finance Act, 1975, w.e.f. 1-4-1975.
[R89]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972
[R90]See also Circular No. 264, dated 11-2-1980.
[R91]See rules 30, 31, 31A, 31AB and 37 and Form Nos. 16A, 26, 26AS and 26Q
[R92]Inserted by the Finance Act, 2001, w.e.f. 1-6-2001
[R93] Substituted for “one thousand rupees” by the Finance Act, 1986, w.e.f. 1-6-1986.
[R94] The first proviso omitted by the Finance Act,
1999, w.e.f. 1-4-2000. Prior to its
omission, the first proviso read as under :
“Provided that no deduction shall be made under this section from any payment made before the 1st day of June, 1972:”
[R95]Inserted by the Finance Act, 1997, w.e.f. 1-6-1997
[R96]Word “further” omitted by the Finance Act, 1999, w.e.f. 1-4-2000
[R97]Inserted by the Finance Act, 1978, w.e.f. 1-4-1978
[R98]See rules 30, 31, 31A, 31AB and 37 and Form Nos. 16A, 26, 26AS and 26Q
[R99]Substituted for “five thousand rupees” by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991. Earlier italicised words were substituted by the Finance Act, 1986, w.e.f. 1-6-1986.
[R100]Proviso omitted by the Finance Act, 1999,
w.e.f. 1-4-2000. Prior to its omission, the proviso read as under
:
“Provided that no deduction shall be made under this section from any payment made before the 1st day of June, 1978.”
[R101]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972
[R102]See also Circular No. 433, dated 25-9-1985, Circular No. 487, dated 8-6-1987, Circular No. 502, dated 27-1-1988, Circular No. 558, dated 28-3-1990, Circular No. 681, dated 8-3-1994, Circular No. 713, dated 2-8-1995, Circular No. 714, dated 3-8-1995, Circular No. 715, dated 8-8-1995 and Circular No. 723, dated 19-9-1995
[R103] See rules 28, 28AA, 28AB, 30, 31, 31A, 31AB and 37 and Form Nos. 13, 16A, 26, 26AS and 26Q.
[R104]For the meaning of the expressions “carrying out any work” and “contractor”
[R105]For the meaning of the expressions “carrying out any work” and “contractor”
[R106]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973
[R107]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R108]Substituted for the word “society,” by the Finance Act, 1992, w.e.f. 1-6-1992
[R109]Inserted by the Finance Act, 1992, w.e.f. 1-6-1992
[R110]Inserted by the Finance Act, 1995, w.e.f. 1-7-1995
[R111]Inserted by the Finance Act, 1995, w.e.f. 1-7-1995
[R112]Substituted for “deduct an amount equal to two per cent of such sum as income-tax on income comprised therein” by the Finance Act, 1995, w.e.f. 1-7-1995
[R113]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002.
[R114]Inserted by the Finance Act, 1994, w.e.f. 1-6-1994.
[R115]Inserted by the Finance Act, 1988, w.e.f. 1-6-1988
[R116]Renumbered by the Finance Act, 1994, w.e.f. 1-6-1994
[R117]Inserted by the Finance Act, 1995, w.e.f. 1-7-1995
[R118]Substituted by the Finance (No. 2) Act, 2004,
w.e.f. 1-10-2004. Prior to its substitution, clause (i), as amended by
the Finance Act, 1982, w.e.f. 1-6-1982 and Finance Act, 1995, w.e.f. 1-7-1995,
read as under:
“(i) any sum credited or paid in pursuance of any contract the consideration for which does not exceed twenty thousand rupees; or
[R119]Substituted for “under this section; or” by the Finance Act, 2005, w.e.f. 1-6-2005
[R120]Second and third provisos inserted by the Finance Act, 2005, w.e.f. 1-6-2005
[R121]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973
[R122]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973
[R123]Inserted by the Finance Act, 2005, w.e.f. 1-6-2005
[R124]Omitted by the Finance Act, 2003, w.e.f.
1-6-2003. Prior to their omission, sub-sections (4) and (5), as amended by the
Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under :
“(4) Where the 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 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 Assessing Officer, deduct income-tax at the rates specified in such certificate or deduct no tax, as the case may be.”
[R125]Omitted by the Finance Act, 2003, w.e.f.
1-6-2003. Prior to their omission, sub-sections (4) and (5), as amended by the
Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under :
“(4) Where the 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 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 Assessing Officer, deduct income-tax at the rates specified in such certificate or deduct no tax, as the case may be.”
[R126]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973
[R127]See also Circular No. 120, dated 8-10-1973
[R128]See rules 28(1), 28AA, 28AB, 30, 31, 31A, 31AB and 37 and Form Nos. 13, 16A , 26, 26AS and 26Q.
[R129]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.
[R130]Inserted by the Direct Tax Laws (Second 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
[R131]See rules 30, 31, 31AB and 37A and Form Nos. 16A, 26AS and 27
[R132]Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991
[R133]See rules 29C, 30, 31, 31A, 31AB and 37 and Form Nos. 15G, 15H, 16A, 26, 26AS and 26Q
[R134]Inserted by the Finance Act, 1990, w.e.f. 1-4-1991
[R135]See rules 30, 31, 31A, 31AB and 37 and Form Nos. 16A, 26, 26AS and 26Q.
[R136]Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991
[R137]See rules 28, 28AA, 28AB, 30, 31, 31A, 31AB and 37 and Form Nos. 13, 16A, 26, 26AS and 26Q.
[R138]Renumbered by the Finance Act, 1992, w.e.f. 1-6-1992
[R139]Omitted by the Finance Act, 2003, w.e.f.
1-6-2003. Prior to their omission, sub-sections (2) and (3), as inserted by the
Finance Act, 1992, w.e.f. 1-6-1992, read as under :
“(2) Where the Assessing Officer is
satisfied that the total income of any person who is or has been stocking,
distributing, purchasing or selling lottery tickets justifies the deduction of
income-tax at any lower rate or no deduction of income-tax, as the case may be,
the Assessing Officer shall, on an application made by such person in this
behalf, give to him such certificate as may be appropriate.
(3) Where any such certificate is given, the person responsible for paying the income referred to in sub-section (1) shall, until such certificate is cancelled by the Assessing Officer, deduct income-tax at the rates specified in such certificate or deduct no tax, as the case may be.”
[R140]Omitted by the Finance Act, 2003, w.e.f.
1-6-2003. Prior to their omission, sub-sections (2) and (3), as inserted by the
Finance Act, 1992, w.e.f. 1-6-1992, read as under :
“(2) Where the Assessing Officer is
satisfied that the total income of any person who is or has been stocking,
distributing, purchasing or selling lottery tickets justifies the deduction of
income-tax at any lower rate or no deduction of income-tax, as the case may be,
the Assessing Officer shall, on an application made by such person in this
behalf, give to him such certificate as may be appropriate.
(3) Where any such certificate is given, the person responsible for paying the income referred to in sub-section (1) shall, until such certificate is cancelled by the Assessing Officer, deduct income-tax at the rates specified in such certificate or deduct no tax, as the case may be.”
[R141]Reintroduced by the Finance Act, 2001, w.e.f. 1-6-2001. Earlier section 194H was omitted by the Finance Act, 1999, w.e.f. 1-4-2000. Prior to its omission, section 194H, was inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991 and later on amended by the Finance Act, 1992, w.e.f. 1-6-1992
[R142]See rules 28, 28AA, 28AB, 30, 31, 31A, 31AB and 37 and Form Nos. 13, 16A, 26, 26AS and 26Q. See also Circular No. 6/2003, dated 3-9-2003
[R143]Substituted for “ten” by the Finance Act, 2002, w.e.f. 1-6-2002
[R144]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002
[R146]Inserted by the Finance Act, 1994, w.e.f. 1-6-1994
[R147] See also Circular No. 699, dated 30-1-1995,
Circular No. 715, dated 8-8-1995, Circular No. 718, dated 22-8-1995, Circular
No. 735, dated 30-1-1996, Circular No. 736, dated 13-2-1996, Circular No.
5/2001, dated 2-3-2001, Circular No. 5/2002, dated 30-7-2002 and Circular No.
12/2002, dated 22-11-2002.
See rules 28, 28AA, 28AB, 30, 31, 31A, 31AB and 37 and Form Nos. 13, 16A, 26, 26AS and 26Q
[R148]Substituted for “any person” by the Finance Act, 2003, w.e.f. 1-6-2003
[R150]Substituted for “deduct income-tax thereon at the rate of twenty per cent:” by the Finance Act, 1995, w.e.f. 1-7-1995
[R151]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002
[R152]Sections 194J and 194K inserted by the Finance Act, 1995, w.e.f. 1-7-1995
[R153] See rules 28, 28AA, 28AB, 30, 31, 31A, 31AB and 37 and Form Nos. 13, 16A, 26, 26AS and 26Q
[R154]See also Circular No. 714, dated 3-8-1995, Circular No. 715, dated 8-8-1995, Circular No. 716, dated 9-8-1995, Circular No. 720, dated 30-8-1995, Circular No. 726, dated 18-10-1995 and Circular No. 766, dated 24-4-1998
[R155]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002
[R156]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003
[R157]Omitted by the Finance Act, 2003, w.e.f.
1-6-2003. Prior to their omission, sub-sections (2) and (3) read as under :
“(2) Where the Assessing Officer is
satisfied that the total income of any person in receipt of the sum referred to
in sub-section (1) justifies the deduction of income-tax at any lower rate or
no deduction of income-tax, as the case may be, the Assessing Officer shall, on
an application made by that person in this behalf, give to him such certificate
as may be appropriate.
(3) Where any such certificate is given,
the person responsible for paying the sum referred to in sub-section (1) shall,
until such certificate is cancelled by the Assessing Officer, deduct income-tax
at the rates specified in such certificate or deduct no tax, as the case may
be.”
18. Omitted
by the Finance Act, 2003, w.e.f. 1-6-2003. Prior to their omission, sub-sections
(2) and (3) read as under :
“(2) Where the Assessing Officer is
satisfied that the total income of any person in receipt of the sum referred to
in sub-section (1) justifies the deduction of income-tax at any lower rate or
no deduction of income-tax, as the case may be, the Assessing Officer shall, on
an application made by that person in this behalf, give to him such certificate
as may be appropriate.
(3) Where any such certificate is given, the person responsible for paying the sum referred to in sub-section (1) shall, until such certificate is cancelled by the Assessing Officer, deduct income-tax at the rates specified in such certificate or deduct no tax, as the case may be.”
[R158]Omitted by the Finance Act, 2003, w.e.f.
1-6-2003. Prior to their omission, sub-sections (2) and (3) read as under :
“(2) Where the Assessing Officer is
satisfied that the total income of any person in receipt of the sum referred to
in sub-section (1) justifies the deduction of income-tax at any lower rate or
no deduction of income-tax, as the case may be, the Assessing Officer shall, on
an application made by that person in this behalf, give to him such certificate
as may be appropriate.
(3) Where any such certificate is given,
the person responsible for paying the sum referred to in sub-section (1) shall,
until such certificate is cancelled by the Assessing Officer, deduct income-tax
at the rates specified in such certificate or deduct no tax, as the case may
be.”
18. Omitted
by the Finance Act, 2003, w.e.f. 1-6-2003. Prior to their omission,
sub-sections (2) and (3) read as under :
“(2) Where the Assessing Officer is
satisfied that the total income of any person in receipt of the sum referred to
in sub-section (1) justifies the deduction of income-tax at any lower rate or
no deduction of income-tax, as the case may be, the Assessing Officer shall, on
an application made by that person in this behalf, give to him such certificate
as may be appropriate.
(3) Where any such certificate is given, the person responsible for paying the sum referred to in sub-section (1) shall, until such certificate is cancelled by the Assessing Officer, deduct income-tax at the rates specified in such certificate or deduct no tax, as the case may be.”
[R159]Substituted by the Finance Act, 2002, w.e.f.
1-6-2002. Prior to its substitution, section 194K, as inserted by the Finance
Act, 1995, w.e.f. 1-7-1995 and amended by the Finance Act, 1999, w.e.f.
1-6-1999, read as under :
‘194K. Income in respect of units.—(1)
Where any income is payable to a resident in respect of units of a Mutual Fund
specified under clause (23D) of section 10 or of the Unit Trust of India
the person responsible for making the payment shall, at the time of credit of
such income to the account of 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,—
(a) twenty
per cent, if the payee is a company, and
(b) fifteen
per cent in the case of other payees :
Provided that no deduction shall be made under this
sub-section from any such income credited or paid on or after the 1st day of
June, 1999.
(2) The provisions of sub-section (1)
shall not apply—
(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 responsible for making the payment to the account
of, or to, the payee does not exceed ten thousand rupees :
Provided that the amount of ten thousand rupees shall
be computed with reference to the income credited or paid,—
(a) in respect of a branch office of the Mutual Fund or of the
Unit Trust of India, as the case may be, and
(b) under a particular scheme under which the units have been
issued;
(ii) to such income credited or paid before the 1st day of July,
1995;
(iii) to
such income credited or paid in respect of units issued under such scheme
already in operation of the Mutual Fund or of the Unit Trust of India, as the
Central Government may, by notification in the Official Gazette, specify in
this behalf having regard to the plan of payment of income thereunder to the
unit-holders; and
(iv) to
such income credited or paid in respect of units issued under any scheme of the
Unit Trust of India to any institution or fund where such income is not liable
to inclusion in its total income under the provisions of sections 11 and 12 or
clause (22) or clause (22A) or clause (23) or clause (23AA)
or clause (23C) of section 10.
Explanation.—For the purposes of this section,—
(a) “Unit
Trust of India” means the Unit Trust of India established under the Unit Trust
of India Act, 1963 (52 of 1963);
(b) where any income as aforesaid 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.
[R160]See rules 28(1), 28AA, 28AB, 29C, 30, 31, 31A, 31AB and 37 and Form Nos. 13, 15G, 15H, 16A, 26, 26AS and 26Q. See also Circular No. 715, dated 8-8-1995, Circular No. 3/2002, dated 28-6-2002, Circular No. 11, dated 22-11-2002, Circular No. 12, dated 22-11-2002, Circular No. 2/2003, dated 11-3-2003 and Circular No. 3/2003, dated 11-3-2003.
[R161]Substituted for “one thousand” by the Finance Act, 2003, w.r.e.f. 1-8-2002.
[R162]Words “two thousand five hundred” should be substituted for the words “one thousand”
[R163]Inserted by the Finance Act, 2003, w.e.f. 1-4-2003
[R164]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999
[R165] Inserted by the Finance Act, 2000, w.e.f. 1-6-2000.
[R166]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004
[R167]See rules 30, 31, 31A, 31AB and 37 and Form Nos. 16A, 26, 26AS and 26Q
[R168]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, Circular No. 20(II-4), dated 3-8-1961, Circular No. 588, dated 2-1-1991, Circular No. 695, dated 28-11-1994, Circular No. 723, dated 19-9-1995, Circular No. 728, dated 30-10-1995, Circular No. 734, dated 24-1-1996, Circular No. 740, dated 17-4-1996, Circular No. 759, dated 18-11-1997, Circular No. 767, dated 22-5-1998, Circular No. 769, dated 6-8-1998, Circular No. 786, dated 7-2-2000, Circular No. 790, dated 20-4-2000 and Circular No. 10/2002, dated 9-10-2002
[R169]Substituted by the Finance Act, 1987, w.e.f. 1-6-1987. Prior to substitution, sub-section (1) was amended by the Finance Act, 1965, w.e.f. 1-4-1965 and the Finance Act, 1975, w.e.f. 1-4-1975
[R170]See rules 26, 28(1), 28AA, 28AB, 29B, 30, 31, 31AB and 37A and Form Nos. 13, 15C, 15D, 16A, 26AS and 27
[R171]Words “(not being interest on securities)” omitted by the Finance Act, 2003, w.e.f. 1-6-2003
[R172]Words “or dividends” omitted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991
[R173]Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, with retrospective effect from 1-6-1987.
[R174]Inserted by the Finance Act, 2003, w.e.f. 1-4-2003. Earlier the second proviso was inserted by the Finance Act, 1997, w.e.f. 1-6-1997 and later on omitted by the Finance Act, 2002, w.e.f. 1-6-2002.
[R175]“interest including” omitted by the Finance Act, 1976, w.e.f. 1-6-1976
[R176]Words “interest on securities” omitted by the Finance Act, 2003, w.e.f. 1-6-2003
[R177]Word “, dividend” omitted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991
[R178]Word “and” omitted by the Finance Act, 2003, w.e.f. 1-6-2003.
[R179]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R180]Substituted for “in the prescribed manner” by the Finance Act, 1988, with retrospective effect from 1-3-1988. The 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.
[R181]Omitted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991. Prior to omission, proviso was inserted by the Finance Act, 1987, w.e.f. 1-6-1987
[R182]Inserted by the Finance Act, 1970, w.e.f. 1-4-1970
[R183]See rule 29B and Form Nos. 15C and 15D
[R184]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R185]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R186]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.
[R187]See also Circular No. 785, dated 24-11-1999
[R188]Substituted for “Where, under an agreement” by the Finance Act, 2002, w.e.f. 1-6-2002
[R189]Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. Earlier it was substituted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
[R190]Substituted by the Finance Act, 1995, w.e.f. 1-7-1995. Prior to its substitution, section 196A was substituted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 15-3-1989 and later amended by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991 and the Finance Act, 1994, w.e.f. 1-6-1994
[R191]See rules 30, 31, 31AB and 37A and Form Nos. 16A, 26AS and 27
[R192]Inserted by the Finance Act, 2003, w.e.f. 1-4-2003. Earlier the proviso was inserted by the Finance Act, 1999, w.e.f. 1-6-1999 and later on omitted by the Finance Act, 2002, w.e.f. 1-6-2002.
[R193]For definition of “foreign currency”, see Appendix one
[R194]Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991
[R195]See rules 30, 31, 31AB and 37A and Form Nos. 16A, 26AS and 27
[R196]Substituted for “Where any income is payable in respect of units referred to in section 115AB to an Offshore Fund” by the Finance Act, 1993, w.e.f. 1-6-1993
[R197]Inserted by the Finance Act, 1992, w.e.f. 1-6-1992.
[R198]Should be read as ‘bonds or global depository receipts
[R199]See rules 30, 31, 31AB and 37A and Form Nos. 16A, 26AS and 27
[R200]Substituted for “Where any income by way of interest or dividends is payable in respect of bonds or shares referred to in section 115AC to a non-resident” by the Finance Act, 1993, w.e.f. 1-6-1993
[R201]Substituted for "bonds or shares" by the Finance Act, 2001, w.e.f. 1-4-2002
[R202]Substituted for “bonds or shares” by the Finance Act, 2001, w.e.f. 1-4-2002
[R203]Inserted by the Finance Act, 2003, w.e.f. 1-4-2003. Earlier the proviso was inserted by the Finance Act, 1997, w.e.f. 1-6-1997 and later on omitted by the Finance Act, 2002, w.e.f. 1-6-2002
[R204]Inserted by the Finance Act, 1993, w.e.f. 1-6-1993
[R205]See rules 30, 31, 31AB and 37A and Form Nos. 16A, 26AS and 27
[R206]Inserted by the Finance Act, 2003, w.e.f. 1-4-2003. Earlier the proviso was inserted by the Finance Act, 1997, w.e.f. 1-6-1997 and later on omitted by the Finance Act, 2002, w.e.f. 1-6-2002
[R207]See rules 28(1), 28AA, 28AB and 29 and Form No.
13.
See also Letter [F. No. 1(54)-63/TPL], dated 18-5-1963, Letter [F.No. 20/23/67-IT(A-I)], dated 28-7-1967 and Circular No. 774, dated 17-3-1999
[R208]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.
[R209]Substituted by the Finance Act, 1992, w.e.f. 1-6-1992. Earlier, amendments were made by the Finance Act, 1965, w.e.f. 1-4-1965, Finance (No. 2) Act, 1967, w.e.f. 1-4-1967, Finance Act, 1972, w.e.f. 1-4-1972, Finance Act, 1973, w.e.f. 1-4-1973, Finance Act, 1978, w.e.f. 1-4-1978, Finance Act, 1986, w.e.f. 1-4-1987 and Direct Tax Laws (Amdt.) Act, 1987, w.e.f. 1-4-1988
[R210]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003
[R211]Inserted by the Finance Act, 1993, w.e.f. 1-6-1993
[R212]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003
[R213]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003.
[R214]Inserted by the Finance Act, 2001, w.e.f. 1-6-2001
[R215]Inserted by the Finance Act, 1994, w.e.f. 1-6-1994
[R216]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003
[R217]Inserted by the Finance Act, 1995, w.e.f. 1-7-1995
[R218]194L” omitted by the Finance Act, 2003, w.e.f. 1-6-2003. Earlier it was inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R219]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004.
[R220]Words “or the total world income” omitted by the Finance Act, 1965, w.e.f. 1-4-1965
[R221]Words “or super-tax” omitted by the Finance Act, 1965, w.e.f. 1-4-1965
[R222]Words “or super-tax” omitted by the Finance Act, 1965, w.e.f. 1-4-1965
[R223]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1988
[R224]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1988
[R225]Words “and super-tax” omitted by the Finance Act, 1965, w.e.f. 1-4-1965
[R226]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987 Sub-section (3) omitted by the Finance Act, 1986, w.e.f. 1-4-1987. Prior to its omission, sub-section (3) was substituted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968
[R227]Sub-section (3) omitted by the Finance Act, 1986, w.e.f. 1-4-1987. Prior to its omission, sub-section (3) was substituted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.
[R228]Inserted by the Finance Act, 1982, w.e.f. 1-6-1982.
[R229]See also Circular No. 351, dated 26-11-1982 and Circular No. 4/2002, dated 16-7-2002
[R230]See rule 29C and Form Nos. 15G and 15H.
[R231]Words “section 193 or” omitted by the Finance Act, 1999, w.e.f. 1-6-1999
[R232]Words “or section 194A” omitted by the Finance Act, 1992, w.e.f. 1-6-1992
[R233]Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991
[R234]Words “or section 193 or” omitted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R235]Substituted for “or, as the case may be, section 194A” by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991
[R236]Words “or section 194A” omitted by the Finance Act, 1992, w.e.f. 1-6-1992
[R237]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
[R238]Substituted by the Finance Act, 1995, w.e.f.
1-7-1995. Prior to its substitution, sub-section (1A), as inserted by the
Finance Act, 1992, w.e.f. 1-6-1992, read as under :
“(1A) Notwithstanding anything contained in section 194A, no deduction of tax shall be made under that section in the case of a person (not being a company or a firm), if such person furnishes to the person responsible for paying any income of the nature referred to in that section, a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that 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.”
[R239]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999
[R240]Substituted for “either” by the Finance Act, 1999, w.e.f. 1-6-1999
[R241]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999
[R242]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002
[R243]Inserted by the Finance, Act, 2003, w.e.f. 1-6-2003
[R244]See rule 29C and Form No. 15H
[R245]Inserted by the Finance Act, 1992, w.e.f. 1-6-1992
[R246]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003.
[R247]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R248]Inserted by the Finance Act, 1992, w.e.f. 1-6-1992
[R249]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003.
[R250]Substituted for the portion beginning with the
words “the provisions of sections 192” and ending with “section 196D” by the
Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. Prior to its substitution, the
quoted portion, as amended by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967,
Finance Act, 1972, w.e.f. 1-4-1972, Finance Act, 1973, w.e.f. 1-4-1973, Finance
Act, 1978, w.e.f. 1-4-1978, Direct Tax Laws (Second Amendment) Act, 1989,
w.e.f. 1-11-1989, Finance (No. 2) Act, 1991, w.e.f. 1-10-1991, Finance Act,
1992, w.e.f. 1-6-1992, Finance Act, 1993, w.e.f. 1-6-1993, Finance Act, 1994,
w.e.f. 1-6-1994, Finance Act, 1995, w.e.f. 1-7-1995 and Finance Act, 1999,
w.e.f. 1-6-1999, read as under:
“the provisions of sections 192 to 194, section 194A, section 194B, section 194BB, section 194C, section 194D, section 194E, section 194EE, section 194F, section 194G, section 194H, section 194-I, section 194J, section 194K, section 194L, section 195, section 196A, section 196B, section 196C and section 196D”
[R251]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002.
[R252]See also Circular No. 3-D(XXI-20), dated 30-3-1967
[R253]Section 199 renumbered as sub-section (1) thereof by the Finance Act, 2002, w.e.f. 1-6-2002
[R254]Substituted for the portion beginning with the
words “the provisions of sections 192” and ending with “section 196D” by the
Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. Prior to its substitution, the
quoted portion, as amended by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967,
Finance Act, 1972, w.e.f. 1-4-1972, Finance Act, 1973, w.e.f. 1-4-1973, Finance
Act, 1978, w.e.f. 1-4-1978, Direct Tax Laws (Second Amendment) Act, 1989,
w.e.f. 1-11-1989, Finance (No. 2) Act, 1991, w.e.f. 1-10-1991, Finance Act,
1992, w.e.f. 1-6-1992, Finance Act, 1993, w.e.f. 1-6-1993, Finance Act, 1994,
w.e.f. 1-6-1994, Finance Act, 1995, w.e.f. 1-7-1995, and Finance Act, 1999,
w.e.f. 1-6-1999, read as under:
“the provisions of sections 192 to 194, section 194A, section 194B, section 194BB, section 194C, section 194D, section 194E, section 194EE, section 194F, section 194G, section 194H, section 194-I, section 194J, section 194K, section 194L, section 195, section 196A, section 196B, section 196C and section 196D”
[R255]Substituted for “income-tax or super-tax, as the case may be,” by the Finance Act, 1965, w.e.f. 1-4-1965
[R256]Inserted by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997
[R257]Words “(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.
[R258]Substituted for “made for the immediately following assessment year under this Act” by the Finance Act, 1987, w.e.f. 1-6-1987
[R259]Substituted by the Finance Act, 1968, w.r.e.f. 1-4-1962
[R260]Inserted by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997
[R261]Substituted by the Finance (No. 2) Act, 1996,
w.e.f. 1-4-1997. Prior to its substitution, the second proviso, as substituted
by the Finance Act, 1968, w.r.e.f. 1-4-1962, read as under :
“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.”
[R262]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002
[R263]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005
[R264]Substituted for “2005” by the Finance Act, 2005, w.e.f. 1-4-2005
[R265]Section 200 renumbered as sub-section (1) thereof by the Finance Act, 2002, w.e.f. 1-6-2002
[R266]See rule 30
[R267]Substituted for the portion beginning with the
words “the provisions of sections 192” and ending with “section 196D” by the
Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. Prior to its substitution, the
quoted portion, as amended by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967,
Finance Act, 1972, w.e.f. 1-4-1972, Finance Act, 1973, w.e.f. 1-4-1973, Finance
Act, 1978, w.e.f. 1-4-1978, Direct Tax Laws (Second Amendment) Act, 1989,
w.e.f. 1-11-1989, Finance (No. 2) Act, 1991, w.e.f. 1-10-1991, Finance Act,
1992, w.e.f. 1-6-1992, Finance Act, 1993, w.e.f. 1-6-1993, Finance Act, 1994,
w.e.f. 1-6-1994, Finance Act, 1995, w.e.f. 1-7-1995 and Finance Act, 1999,
w.e.f. 1-6-1999, read as under:
“the provisions of sections 192 to 194, section 194A, section 194B, section 194BB, section 194C, section 194D, section 194E, section 194EE, section 194F, section 194G, section 194H, section 194-I, section 194J, section 194K, section 194L, section 195, section 196A, section 196B, section 196C and section 196D”
[R268]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002
[R269]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005
[R270]See rule 31A and Form Nos. 24Q and 26Q.
[R271]See also Circular Nos. 685, 686 and 696, dated 17-6-1994, 12-8-1994 and 28-2-1995, respectively
[R272]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002
[R273]Inserted by the Finance Act, 2001, w.r.e.f. 1-4-1962
[R274]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R275]Substituted for “wilfully” by the Finance Act, 1966, w.e.f. 1-4-1966.
[R276]Inserted by the Finance Act, 1966, w.e.f. 1-4-1966.
[R277]See rule 119A
[R278]Inserted by the Finance Act, 2001, w.r.e.f. 1-4-1962
[R279]Substituted for “fifteen” by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. Earlier “fifteen” was substituted for “eighteen” by the Finance Act, 2001, w.e.f. 1-6-2001, “eighteen” was substituted for “fifteen” by the Finance Act, 1999, w.e.f. 1-6-1999, “fifteen” was substituted for “twelve” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984, “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
[R280]Substituted for “it” by the Finance Act, 1966, w.e.f. 1-4-1966
[R281]Substituted for “levy” by the Finance Act, 1987, w.e.f. 1-6-1987
[R282]Substituted for the portion beginning with the
words “sections 192” and ending with “section 196D” by the Finance (No. 2) Act,
2004, w.e.f. 1-10-2004. Prior to its substitution, the quoted portion, as
amended by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967, Finance Act, 1972,
w.e.f. 1-4-1972, Finance Act, 1973, w.e.f. 1-4-1973, Finance Act, 1978, w.e.f.
1-4-1978, Direct Tax Law (Second Amendment) Act, 1989, w.e.f. 1-11-1989,
Finance (No. 2) Act, 1991, w.e.f. 1-10-1991, Finance Act, 1992, w.e.f.
1-6-1992, Finance Act, 1993, w.e.f. 1-6-1993, Finance Act, 1994, w.e.f.
1-6-1994, Finance Act, 1995, w.e.f. 1‑7‑1995 and Finance Act, 1999,
w.e.f. 1-6-1999, read as under:
“sections 192 to 194, section 194A, section 194B, section 194BB, section 194C, section 194D, section 194E, section 194EE, section 194F, section 194G, section 194H, section 194-I, section 194J, section 194K, section 194L, section 195, section 196A, section 196B, section 196C and section 196D”.
[R283]Substituted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
[R284]See also Circular No. 664, dated 29-9-1993, Circular No. 749, dated 27-12-1996 and Circular No.785, dated 24-11-1999
[R285]Section 203 renumbered as sub-section (1) thereof by the Finance Act, 2002, w.e.f. 1-6-2002
[R286]See rule
31 and Form Nos. 16, 16A and 16AA.
[R287]Substituted for the portion beginning with the
words “the provisions of sections 192” and ending with “section 196D” by the
Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. Prior to its substitution, the
quoted portion, as amended by the Finance Act, 1972, w.e.f. 1-4-1972, Finance
Act, 1973, w.e.f. 1-4-1973, Finance Act, 1978, w.e.f. 1-4-1978, Direct Tax Laws
(Second Amendment) Act, 1989, w.e.f. 1-11-1989, Finance (No. 2) Act, 1991,
w.e.f. 1-10-1991, Finance Act, 1992, w.e.f. 1-6-1992, Finance Act, 1993, w.e.f.
1-6-1993, Finance Act, 1994, w.e.f. 1-6-1994, Finance Act, 1995, w.e.f.
1-7-1995 and Finance Act, 1999, w.e.f. 1-6-1999, read as under :
“the provisions of sections 192 to 194, section 194A, section 194B, section 194BB, section 194C, section 194D, section 194E, section 194EE, section 194F, section 194G, section 194H, section 194-I, section 194J, section 194K, section 194L, section 195, section 196A, section 196B, section 196C and section 196D,”
[R288]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
[R289]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002
[R290]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005
[R291]Substituted for “2005” by the Finance Act, 2005, w.e.f. 1-4-2005
[R292]Substituted by the Finance (No. 2) Act, 2004,
w.e.f. 1-10-2004. Prior to its substitution, section 203A, as inserted by the
Finance Act, 1987, w.e.f. 1-6-1987 and later on amended by the Direct Tax Laws
(Amendment) Act, 1987, w.e.f. 1-4-1988, Direct Tax Laws (Second Amendment) Act,
1989, w.e.f. 1-11-1989, Finance (No. 2) Act, 1991, w.e.f. 1-10-1991, Finance
Act, 1992, w.e.f. 1-6-1992, Finance Act, 1993, w.e.f. 1-6-1993, Finance Act,
1994, w.e.f. 1-6-1994, Finance Act, 1995, w.e.f. 1-7-1995, Finance Act, 1999,
w.e.f. 1-6-1999, read as under :
“203A. Tax deduction account number.—(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, section 194E, section
194EE, section 194F, section 194G, section 194H, section 194-I, section 194J,
section 194K, section 194L, section 195, section 196A, section 196B, section
196C and section 196D, if he has not been allotted any tax-deduction account
number, shall, within such time as may be prescribed, apply to the 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.”
[R293]See rule 114A and Form No. 49B. See also Appendix Two
[R294]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005
[R295]See rule 31AB and Form No. 26AS
[R296]Substituted for the portion beginning with the
words “sections 192” and ending with “sections 195 to 203” by the Finance (No.
2) Act, 2004, w.e.f. 1-10-2004. Prior to its substitution, the quoted portion,
as amended by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967, Finance Act,
1972, w.e.f 1-4-1972, Finance Act, 1973, w.e.f. 1-4-1973, Finance Act, 1978,
w.e.f. 1-4-1978, Direct Tax Laws (Second Amendment) Act, 1989, w.e.f.
1-11-1989, Finance (No. 2) Act, 1991, w.e.f. 1-10-1991, Finance Act, 1994,
w.e.f. 1-6-1994, Finance Act, 1995, w.e.f. 1-7-1995 and Finance Act, 1999,
w.e.f. 1-6-1999, read as under:
“sections 192 to 194, section 194A, section 194B, section 194BB, section 194C, section 194D, section 194E, section 194EE, section 194F, section 194G, section 194H, section 194-I, section 194J, section 194K, section 194L, sections 195 to 203”
[R297]Section 285 has since been omitted by the Finance Act, 1987, w.e.f. 1-6-1987
[R298]Inserted by the Finance Act, 1986, w.e.f. 1-6-1986
[R299]Substituted for “in the case of payments” by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967
[R300]Inserted by the Finance Act, 1986, w.e.f. 1-6-1986
[R302]Substituted for the portion beginning with the
words “sections 192” and ending with “section 196D” by the Finance (No. 2) Act,
2004, w.e.f. 1-10-2004. Prior to its substitution, the quoted portion, as
amended by the Finance (No. 2) Act, 1967, w.e.f 1-4-1967, Finance Act, 1972,
w.e.f. 1-4-1972, Finance Act, 1973, w.e.f. 1-4-1973, Finance Act, 1978, w.e.f.
1-4-1978, Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-11-1989,
Finance (No. 2) Act, 1991, w.e.f. 1-10-1991, Finance Act, 1992, w.e.f.
1-6-1992, Finance Act, 1993, w.e.f. 1-6-1993, Finance Act, 1994, w.e.f.
1-6-1994, Finance Act, 1995, w.e.f. 1-7-1995 and Finance Act, 1999, w.e.f.
1-6-1999, read as under:
“sections 192 to 194, section 194A, section 194B, section 194BB, section 194C, section 194D, section 194E, section 194EE, section 194F, section 194G, section 194H, section 194-I, section 194J, section 194K, section 194L, section 195, section 196A, section 196B, section 196C and section 196D”
[R303]Substituted by the Finance Act, 1987, w.e.f. 1-6-1987. Prior to its substitution, section 206 was amended by the Finance Act, 1965, w.e.f. 1-4-1965
[R304]See also Circular No. 719, dated 22-8-1995, Circular No. 744, dated 6-5-1996, Circular No. 796, dated 10-10-2000, Circular No. 797, dated 10-10-2000 and Circular No. 8/2003, dated 18-9-2003
[R305]Section 206 renumbered as sub-section (1) by the Finance Act, 1997, w.e.f. 1-4-1997
[R306]See rule 36 for prescribed persons
[R307]See rule 36 for prescribed persons
[R308]Substituted for “shall prepare, within the prescribed time after the end of each financial year, and deliver or cause to be delivered” by the Finance (No. 2) Act, 1991, w.e.f. 27-9-1991
[R309]See rule 36A. The prescribed authority under rule 36A is :
(i) the
Assessing Officer, so designated by the Chief Commissioner or Commissioner of
Income-tax, within whose area of jurisdiction, the office of the person
responsible for deducting tax under Chapter XVII-B is situated; or
(ii) in any other case, to the Assessing Officer within whose area of jurisdiction, the office of the person responsible for deducting tax under Chapter XVII-B is situated.
[R310]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004
[R311]See rules 36 and 37 and Form Nos. 24 and 26. Also see rule 37A and Form No. 27
[R312]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004
[R313]Sub-sections (2), (3) and (4) substituted for
sub-sections (2) and (3) by the Finance Act, 2003, w.e.f. 1-6-2003. Prior to
their substitution, sub-sections (2) and (3), as inserted by the Finance Act,
1997, w.e.f. 1-4-1997, read as under :
“(2) Notwithstanding anything contained in
any other law for the time being in force, a return filed on a floppy,
diskette, magnetic cartridge tape, CD-ROM or any other computer readable media
as may be specified by the Board (hereinafter referred to as the computer media)
shall be deemed to be a return for the purposes of this section and the rules
made thereunder and shall be admissible in any proceedings thereunder, without
further proof of production of the original, as evidence of any contents of the
original or of any fact stated therein.
(3) A return filed under sub-section (2)
shall fulfil the following conditions, namely :—
(a) while
receiving returns on computer media, necessary checks by scanning the documents
filed on computer media will be carried out and the media will be duly
authenticated by the Assessing Officer; and
(b) the Assessing Officer shall also take due care to preserve the computer media by duplicating, transferring, mastering or storage without loss of data.”
[R314]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005
[R315]See Electronic Filing of Returns of Tax Deducted at Source Scheme, 2003. See also rule 37B and Form No. 27A
[R316]Substituted by the Finance (No. 2) Act, 2004,
w.e.f. 1-4-2005. Prior to its substitution, proviso read as under :
“Provided that the principal officer shall, in the case of every company responsible for deducting tax under the foregoing provisions of this Chapter, deliver or cause to be delivered, within the prescribed time after the end of each financial year, such returns on computer media under the said scheme.”
[R317]Inserted by the Finance Act, 2005, w.e.f. 1-6-2005.
Earlier original section 206A was inserted by the Finance (No. 2) Act, 1967,
w.e.f. 1-4-1967 and thereafter amended by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1988. Prior to its omission by the Finance (No. 2) Act, 1996,
w.e.f. 1-10-1996, section 206A read as under :
“206A. Person paying interest to
residents without deduction of tax, to furnish prescribed return.—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 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.”
[R318]Prior to its omission, section 206B, as
inserted by the Finance (No. 2) Act, 1977, w.e.f. 1-10-1977 and later on
amended by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as
under :
“206B.
Person paying dividend to certain residents without deduction of tax to
furnish prescribed form.—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 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.”
[R319]Inserted by the Finance Act, 1988, w.e.f. 1-6-1988
[R320]See also Circular No. 585, dated 27-11-1990
[R321]Substituted by the Finance Act, 1992, w.e.f. 1-4-1992. Prior to substitution, sub-section (1) was amended by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-6-1988
[R322]See rules 37C, 37CA, 37D, 37E, 37EA, 37F, 37G and 37H and Form Nos. 13, 27B, 27C, 27D and 27E.
[R324]Substituted by the Taxation Laws (Amendment)
Act, 2003, w.e.f. 8-9-2003. Prior to its substitution, the Table, as amended by
the Finance Act, 1992, w.e.f. 1-4-1992, Finance (No. 2) Act, 1996, w.e.f.
1-10-1996 and Finance Act, 2003, w.e.f. 1-6-2003, read as under :
“TABLE
|
Sl. No. |
Nature of goods |
Percentage |
|
(1) |
(2) |
(3) |
|
(i) |
Alcoholic liquor for human consumption and tendu leaves |
Ten per cent |
|
(ii) |
Timber obtained under a forest lease |
Fifteen per cent |
|
(iii) |
Timber obtained by any mode other than under a forest lease |
Five per cent |
|
(iv) |
Any other forest produce not being timber or tendu leaves |
Fifteen per cent |
|
(v) |
Scrap |
Ten per cent :” |
[R325]Substituted by the Taxation Laws (Amendment)
Act, 2003, w.e.f. 8-9-2003. Prior to its substitution, proviso read as under :
“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.”
[R326]Inserted by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003
[R327]See rule 37C and Form No. 27C
[R328]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004.
[R329]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004.
[R330]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004.
[R331]Substituted for “seven days” by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003
[R332]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005
[R333]See rule 31AA and Form No. 27EQ.
[R334]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005
[R335]Substituted for “2005” by the Finance Act, 2005, w.e.f. 1-4-2005
[R336]Substituted for “ten days from the date of debit” by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003
[R337]See rule 37D and Form No. 27D
[R338]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004
[R339]See rule 37D and Form No. 27D
[R340]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005.
[R341]Substituted for “2005” by the Finance Act, 2005, w.e.f. 1-4-2005
[R342]See rule 31AB and Form No. 26AS
[R343]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R344]Substituted for “prepare half yearly returns for the period ending on 30th September and 31st March in each financial year” by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004.
[R345]The prescribed authority under rule 37F is :
(i) the
Income-tax Officer, so designated by the Chief Commissioner or Commissioner of
Income-tax within whose area of jurisdiction the office of the person
responsible for collecting tax under Chapter XVII-BB is situated; or
(ii) in any other case, to the Income-tax Officer within whose area of jurisdiction the office of person responsible for collecting tax is situated.
[R346]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004.
[R347]See rule 37E and Form No. 27E.
[R348]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004
[R349]Sub-sections (5B), (5C) and (5D) substituted
for sub-sections (5B) and (5C) by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005.
Prior to their substitution, sub-sections (5B) and (5C), as inserted by the
Finance Act, 1999, w.e.f 1-6-1999, read as under.
“(5B) Notwithstanding anything contained in
any other law for the time being in force, a return filed on a floppy,
diskette, magnetic cartridge tape, CD-ROM or any other computer readable media
as may be specified by the Board (hereinafter referred to as the computer
media) shall be deemed to be a return for the purposes of sub-section (5A) and
the rules made thereunder and shall be admissible in any proceedings
thereunder, without further proof of production of the original, as evidence of
any contents of the original or of any fact stated therein.
(5C) A return filed under sub-section (5B)
shall fulfil the following conditions, namely:—
(a) while
receiving returns on computer media, necessary checks by scanning the documents
filed on computer media will be carried out and the media will be duly
authenticated by the Assessing Officer; and
(b) the Assessing Officer shall also take due care to preserve the computer media by duplicating, transferring, mastering or storage without loss of data.”
[R350]See rule 37EA and Form No. 27B. See also Electronic Filing of Returns of Tax collected at Source Scheme, 2005
[R351]Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. Earlier the quoted words were substituted for "two" by the Finance Act, 2001, w.e.f. 1-6-2001
[R352]Sub-sections (9), (10) and (11) inserted by the Finance Act, 1999, w.e.f. 1-6-1999
[R353]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004
[R354]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004.
[R355]See rules 37G and 37H and Form No. 13
[R356]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004
[R357]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004
[R358]Inserted by the Finance Act, 1992, w.e.f. 1-4-1992.
[R359]Substituted by the Taxation Laws (Amendment)
Act, 2003, w.e.f. 8-9-2003. Earlier sub-clauses (i) and (ii), as
substituted for sub-clauses (i), (ii) and (iii) by the
Finance Act, 2003, w.e.f. 1-6-2003, read as under :
“(i) a public sector
company, or
(ii) a buyer in the retail sale of such goods obtained in pursuance of such sale;
[R360]Clauses (b) and (c) substituted
for clause (b) by the Finance Act, 2003, w.e.f. 1-6-2003. Prior to its
substitution, clause (b) read as under :
‘(b) “seller” means the Central Government, a State Government or any local authority or corporation or authority established by or under a Central, State or Provincial Act, or any company or firm or co-operative society.
[R361]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002
[R362]See rule 114AA
[R363]See rule 114AA and Form No. 49B
[R364]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004
[R365]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
[R367]Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 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
[R368]Substituted for “one thousand five hundred” by the Finance (No. 2) Act, 1996, w.e.f. 1-10-1996
[R369]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
[R370]Inserted by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-6-1988
[R371]Inserted by the Finance Act, 1974, w.e.f. 1-4-1974
[R372]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 the italicised words were inserted by the Finance Act, 1978, w.e.f. 1-6-1978.
[R373]Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R374]Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. Prior to substitution, clause (b) was amended by the Finance Act, 1978, w.e.f. 1-6-1978
[R375]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R376]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R377]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
[R378]Omitted section 209A was 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
[R379]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
[R380]Words “and who has not paid any advance tax under sub-section (1)” omitted by the Finance Act, 2002, w.e.f. 1-6-2002
[R381]See rule 39 and Form No. 28A for form of estimate of advance tax.
[R382] 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
[R383]See Circular No. 676, dated 14-1-1994
[R384]Substituted by the Finance Act, 1994, w.e.f. 1-4-1994. Prior to its substitution, sub-section (1), was substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and later amended by the Finance Act, 1992, w.e.f. 1-4-1992
[R385]Prior to omission section 213 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
[R386]See rule 119A
[R387]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, Letter [F.No. 12/12/68-IT(A-II)], dated 11-12-1968 and Instruction No. 947, dated 23-4-1976
[R388]Substituted for “twelve” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984. 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
[R389]Substituted for “tax determined on regular assessment” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985
[R390]Inserted by the Finance Act, 1968, w.e.f. 1-4-1968
[R391]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
[R392]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R393]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R394] Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R395]Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985
[R396]See also Letter [F.No. 400/40/73-ITCC], dated 19-10-1973 and Circular No. 492, dated 21-7-1987
[R397]Substituted by the Finance Act, 1969, w.e.f. 1-4-1970
[R398]See rules 40 and 119A
[R399]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
[R400]Substituted for “twelve” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984. Earlier, “twelve” was substituted for “nine” by the Finance Act, 1972, w.e.f. 1-4-1972.
[R401]Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-9-1980
[R402]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
[R403]Substituted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985.
[R404]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R405]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R406]See rule 40
[R407]Substituted for “Income-tax” by the Direct Tax Laws
(Amendment) Act, 1987, w.e.f. 1-4-1988.
[R408]Inserted by the Finance Act, 1969, w.e.f. 1-4-1970
[R409]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972
[R410]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973
[R411]Substituted for “and section 195” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R412]Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985
[R413]See rule 119A
[R414]See also Letter [F.No. 400/58/78-ITCC], dated 29-2-1980
[R415]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R416]Substituted by the Finance Act, 1969, w.e.f. 1-4-1970
[R417]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
[R418]Substituted for “twelve” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984. 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
[R419]See rules 40 and 119A.
[R420]Substituted by the Finance Act, 1969, w.e.f. 1-4-1970
[R421]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.
[R422]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R423]Substituted for “twelve” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984. Earlier, “twelve” was substituted for “nine” by the Finance Act, 1972, w.e.f. 1-4-1972
[R424]Substituted for “sub-section” by the Finance Act, 1978, w.e.f. 1-6-1978
[R425]Inserted by the Finance Act, 1969, w.e.f. 1-4-1970
[R426]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R427]Inserted by the Finance Act, 1978, w.e.f. 1-6-1978
[R428]Substituted for “twelve” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984. Earlier, “twelve” was substituted for “nine” by the Finance Act, 1972, w.e.f. 1-4-1972.
[R429]Substituted for “sub-section” by the Finance Act, 1978, w.e.f. 1-6-1978.
[R430]Substituted for sub-sections (1) to (3) of section 218, which were earlier 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
[R431]Proviso omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Original proviso was inserted by the Finance Act, 1968, w.e.f. 1-4-1968
[R432]See also Circular No. 334, dated 3-4-1982, Instruction No. 96, dated 21-8-1969 and Circular No. 530, dated 6-3-1989 read with Circular No. 589, dated 16-1-1991
[R433]Substituted for “thirty-five” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R434]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R435]Substituted for “thirty-five” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R436]Substituted for the “Deputy Commissioner” by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner” was substituted for “Inspecting Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R437]Substituted for "thirty-five" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R438]See rule 119A
[R439]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
[R440]Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. Earlier “one and one-fourth” was substituted for “one and one-half” by the Finance Act, 2001, w.e.f. 1-6-2001.
[R441]Inserted by the Finance Act, 1963, w.r.e.f. 1-4-1962
[R442]Inserted by the Taxation Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R443]Inserted by the Taxation Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R444]Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984
[R445]Substituted for “the Board may” by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1987
[R446]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R447]Inserted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.r.e.f. 1-10-1984.
[R448]Substituted for “, on the recommendation made by the Commissioner in this behalf, it is satisfied” by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1987
[R449]Inserted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.r.e.f. 1-10-1984
[R450]Inserted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.r.e.f. 1-10-1984
[R452]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R453] Inserted by the Finance Act, 2000, w.e.f. 1-6-2000
[R454]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R455]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R456]See also Letter [F.No. 16/87/67-IT(B)], dated 10-7-1967, Circular No. 685, dated 17-6-1994, Circular No. 686, dated 12-8-1994 and Circular No. 696, dated 28-2-1995.
[R457]Substituted by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971
[R459]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R461]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R462]Substituted
by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986,
w.e.f. 10-9-1986.
[R463]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R465]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975
[R466]Substituted for the following portion in
sub-section (1), 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 the rules laid down in the Second Schedule—”
[R467]See rule 117B and Form No. 57 for form of statement drawn by TRO
[R468]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975
[R469]Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Prior to its substitution, sub-section (2) was amended by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988
[R470]Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Prior to its substitution, section 223, was 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
[R471]See rule 117B and Form No. 57
[R472]Substituted 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
[R473]Substituted 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, w.r.e.f. 1-4-1988
[R475]Substituted 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, w.r.e.f. 1-4-1988
[R476]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R477]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R478]For text of section 60 of the Code of Civil Procedure, 1908, see Appendix One.
[R479]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R480]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R483]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R484]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R485]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R486]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R487]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R488]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R489]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R490]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R491]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R492]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R493]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R494]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R495]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R496]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R497]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R498]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R499]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R500]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R501]Substituted by the Finance Act, 1965, w.e.f. 1-4-1965
[R502]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R503]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R504]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R505]Prior to its omission, section 228, was amended by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988
[R506]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R507]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, w.r.e.f. 1-4-1988
[R508]Substituted 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, w.r.e.f. 1-4-1988.
“(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.”
[R509]See Instruction No. 1/2004, dated 5-2-2004 and Circular No. 2/2004, dated 10-2-2004
[R510]Sub-sections (1) and (1A) substituted for
sub-section (1) by the Finance Act, 2003, w.e.f. 1-6-2003. Prior to its
substitution, sub-section (1), as amended by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1989, read as under :
‘(1)
Subject to such exceptions as the Central Government may, by notification in
the Official Gazette, specify in this behalf, no person—
(a) who is not domiciled in
(b) who is domiciled in
(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 authority as may be appointed by the Central
Government in this behalf (hereinafter in this section referred to as the
“competent authority”) 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.
[R511]See rule 42(1)
[R512]See rule 43(1)and Form No. 30A
[R513]See rule 42(1)
[R514]See rule 43(2) and Form No. 30B
[R515]See rule 43(3) and Form No. 30C
[R516]See rule 42(2).
[R517]See rule 43(4)/(5) and Form Nos. 31 & 33
[R518]Word “further” should occur after the word “Provided”
[R519]Inserted by the Taxation Laws (Amendment) Act, 2003, w.r.e.f. 1-6-2003
[R520]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R521]See rules 42 and 43 and Form Nos. 30A, 30B, 30C, 31 and 33
[R522] Prior to its omission, section 230A, as
inserted by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964, and later
on amended by the Finance (No. 2) Act, 1971, w.e.f. 1-10-1971, Direct Tax Laws
(Amendment) Act, 1987, w.e.f. 1-4-1988, Finance Act, 1988, w.e.f. 1-4-1988 and
Finance Act, 1995, w.e.f. 1-7-1995, read as under :
“230A. Restrictions on registration of
transfers of immovable property in certain cases.—(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 valued at more
than five lakh rupees, no registering officer appointed under that Act shall
register any such document, unless the Assessing Officer certifies that—
(a) such
person has either paid or made satisfactory provision 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), 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.
(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.
(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 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.”
[R523]Prior to its omission, section 231 was amended by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984
[R524]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R525] Prior to its omission, section 234 was amended by the Taxation Laws (Amendment) Act, 1970, w.r.e.f. 1-4-1968/1-4-1971.
[R526]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R527]For CBDT’s Instructions on reduction/waiver of interest charged under section 234A/234B/234C
[R529]Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. Earlier the quoted words were amended by the Finance Act, 1999, w.e.f. 1-6-1999 and Finance Act, 2001, w.e.f. 1-6-2001
[R530]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
[R531]Substituted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R532]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003
[R533]Omitted by the Finance Act, 2001, w.r.e.f.
1-4-1989. Prior to its omission, Explanation 4, as inserted by the
Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, read as under :
‘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.
[R534]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003
[R535] Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R536]Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. Earlier the quoted words were amended by the Finance Act, 1999, w.e.f. 1-6-1999 and Finance Act, 2001, w.e.f. 1-6-2001
[R537]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003
[R538]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R539]Omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R540]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R542]Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. Earlier the quoted words were amended by the Finance Act, 1999, w.e.f. 1-6-1999 and Finance Act, 2001, w.e.f. 1-6-2001
[R543]Substituted for “to the date of the regular assessment” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R544]Substituted for “or regular assessment, on an amount” by the Finance Act, 1995, w.r.e.f. 1-4-1989
[R545]Substituted by the Finance Act, 2001, w.r.e.f.
1-4-1989. Prior to its substitution, Explanation 1, as substituted
by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, read as under :
‘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.’
[R546]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003
[R547]Substituted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R548]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R549]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003
[R550]Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. Earlier the quoted words were amended by the Finance Act, 1999, w.e.f. 1-6-1999 and Finance Act, 2001, w.e.f. 1-6-2001
[R551]Substituted for “the date of the regular assessment” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R552]Substituted for “or regular assessment referred to in sub-section (1)” by the Finance Act, 1995, w.r.e.f. 1-4-1989
[R553]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003
[R554]Substituted for “the date of the regular assessment” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R555]Omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R556]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R557]Substituted for the portion beginning with the
words “Where in any financial year” and ending with the words “as the case may
be, sixty per cent of the tax due on the returned income:” by the Finance Act,
1994, w.e.f. 1-4-1995. Earlier the quoted portion, as amended by the Finance
(No. 2) Act, 1991, w.r.e.f. 1-4-1989 and the Finance Act, 1992, w.e.f.
1-6-1992, read as under :
“Where in any financial year, the assessee who is liable to pay advance tax under section 208 has failed to pay such tax or the advance tax paid by the assessee on his current income on or before the 15th day of September is less than thirty 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 sixty 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 for a period of three months on the amount of the shortfall from thirty per cent or, as the case may be, sixty per cent of the tax due on the returned income.”
[R559]Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. Earlier “one and one-fourth” was substituted for “one and one-half” by the Finance Act, 2001, w.e.f. 1-6-2001.
[R560] Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. Earlier “one and one-fourth” was substituted for “one and one-half” by the Finance Act, 2001, w.e.f. 1-6-2001.
[R561] Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. Earlier “one and one-fourth” was substituted for “one and one-half” by the Finance Act, 2001, w.e.f. 1-6-2001
[R562]Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. Earlier “one and one-fourth” was substituted for “one and one-half” by the Finance Act, 2001, w.e.f. 1-6-2001.
[R563]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R564]Substituted for “instalment of advance tax which is immediately due or where no such instalment is so due” by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997.
[R565]Second proviso inserted by the Taxation Laws
(Amendment) Act, 2000, w.e.f. 4-1-2001. Earlier the second proviso, as inserted
by the Taxation Laws (Amendment) Act, 1991, w.e.f. 15-1-1991 and later on
omitted by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997, read as under :
“Provided further 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—
(a) restricting the amount of deduction under
the third proviso to clause (ii) of sub-section (1) of section 32;
(b) increase in the rate of surcharge under
section 2 of the Finance Act, 1990 (12 of 1990), as amended by the Taxation
Laws (Amendment) Act, 1991,
and
the assessee has paid the amount of shortfall,—
(i) where it is a
domestic company and—
(1) the case falls under clause (a), as
part of the instalment of advance tax which is immediately due;
(2) the case falls under clause (b), on
or before the 15th day of November, 1990, in respect of the instalment of
advance tax due on the 15th day of September, 1990;
(ii) where it is not a
domestic company and—
(1) the case falls under clause (a), as
part of the instalment of advance tax which is immediately due;
(2) the case falls under clause (b), as part of the instalment of advance tax due on or before the 15th day of March, 1991.”
[R566]Third proviso inserted by the Taxation Laws (Amendment) Act, 2001, w.r.e.f. 3-2-2001
[R567]Inserted by the Finance Act, 1992, w.r.e.f. 1-4-1989
[R568]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” by the Taxation Laws (Amendment) Act, 1991, w.e.f. 15-1-1991
[R569]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003.
[R570]Substituted for “two-third” by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003