CHAPTER
XVII
Collection and recovery of tax
A.—General
Deduction at source and advance
payment.
13[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 14[R2] [or collection] at source or by advance
payment 15[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.
16[R4] 191. 17[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. 18[R6] [***]
18a[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
19[R8] 192. 20[R9] (1)
Any person responsible for paying any income chargeable under the head
“Salaries” shall, at the time of payment, deduct income-tax 21[R10] [***]
on the amount payable at the average rate of income-tax 22[R11] [***]
computed on the basis of the 23[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.
24[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 therefrom 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.]
25[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 therefrom and such other particulars, in such form and
verified in such manner as may be prescribed26[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).]
27[R16] [(2A) Where
the assessee, being a Government servant or an employee in a 28[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).]
29[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.]
30[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 prescribed31[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.]
32[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 prescribed33[R22] .]
(3) The person responsible for making the payment referred to in
sub-section (1) 34[R23] [or
sub-section (1A)] 35[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.
36[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, 37[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.
38[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.
40[R29] Interest on securities.
41[R30] 193. The
person responsible for paying 41a[R31] [to a resident] any income 42[R32] [by way
of interest on securities] shall, 43[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 44[R34] [***]
at the rates in force on the amount of the interest payable :
46[R36] [Provided 47[R37] [***]
that no tax shall be deducted from—
(i) any interest payable on 4Ľ per cent National Defence Bonds,
1972, where the bonds are held by an individual, not being a non-resident; or
48[R38] [(ia) any interest payable to an individual on 4Ľ
per cent National Defence Loan, 1968, or 4ľ
per cent National Defence Loan, 1972; or]
49[R39] [(ib) any interest payable on National
Development Bonds; or]
51[R41] [(iia) any interest payable on 7-Year National
Savings Certificates (IV Issue); or]
52[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 notification53[R43] in the Official Gazette, specify in this
behalf;]
(iii) any interest payable on 6˝ per cent Gold
Bonds, 1977, or 7 per cent Gold Bonds, 1980, where the Bonds are held by an
individual not being a non-resident, and the holder thereof makes a declaration
in writing before the person responsible for paying the interest that the total
nominal value of the 6˝ pe c r 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;
56[R46] [(iv) any interest payable on any security of the
Central Government or a State Government;]
57[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 58[R48] [two thousand and five hundred rupees];]
59[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.]
60[R50] [Explanation 61[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.—62[R52] [Omitted
by the Finance Act, 1992, w.e.f. 1-6-1992.]
63[R53] 194. 64[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, 65[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 66[R56] [***]
at the rates in force :
67[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 67a[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 India established under the Life Insurance Corporation
Act, 1956 (31 of 1956), in respect of any shares owned by it or in which it has
full beneficial interest;
(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 :]
67b[R59] [Provided also that no such deduction shall
be made in respect of any dividends referred to in section 115-O.]
68[R60] [Interest other than “Interest
on securities”.
69[R61] 194A. 70[R62] (1) Any person71,[R63] not
being an individual or a Hindu undivided family, who is responsible for paying71[R64] to
a resident any income by way of interest other than income 72[R65] [by
way of interest on securities], shall, at the time of credit of such income to
the account of the payee73[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 :
74[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.]
75[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) 76[R69] [Omitted
by the Finance Act, 1992, w.e.f. 1-6-1992.]
(3) The provisions of sub-section (1) shall not apply—
77[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 78[R71] [five thousand rupees]:]
79[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 80[R73] [and which is eligible for deduction under
clause (viii) of sub-section (1) of section 36] 81[R74] [***], 82[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 India established under
the Life Insurance Corporation Act, 1956 (31 of 1956), or
(d) the Unit Trust of India established under the Unit Trust of
India Act, 1963 (52 of 1963), or
(e) any company or co-operative society carrying on the business
of insurance, or
(f) such other institution, association or body 84[R77] [or class of institutions, associations or
bodies] which the Central Government may, for reasons to be recorded in
writing, notify85[R78] in this behalf in the Official Gazette;
86[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 87[R80] [to a member thereof or] to any other
co-operative society;]
88[R81] [(vi) to such income credited or paid in respect of
deposits under any scheme framed by the Central Government and notified89[R82] by it in this behalf in the Official
Gazette;
90[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;]
91[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).]
91a[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.]
92[R86] [Explanation.—For
the purposes of clauses (i), (vii) and (viia), “time
deposits” means deposits (excluding recurring deposits) repayable on the expiry
of fixed periods.]
93[R87] [(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.—94[R88] [Omitted
by the Finance Act, 1992, w.e.f. 1-6-1992.]
95[R89] [Winnings from lottery or crossword puzzle.
96[R90] 194B. 97[R91] The
person responsible for paying to any person any income by way of winnings from
any lottery or crossword puzzle 98[R92] [or
card game and other game of any sort] in an amount exceeding 99[R93] [five
thousand rupees] shall, at the time of payment thereof, deduct income-tax
thereon at the rates in force :
2[R95] [Provided
3[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.]
4[R97] [Winnings from
horse race.
194BB. 5[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 6[R99] [two
thousand five hundred rupees] shall, at the time of payment thereof, deduct
income-tax thereon at the rates in force.
8[R101] [Payments to
contractors and sub-contractors.
9[R102] 194C. 10[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 work11[R104] (including supply of labour for carrying out
any work) in pursuance of a contract between the contractor and—
(a) the Central
Government or any State Government; or
(b) any local
authority; or
(c) any corporation
established by or under a Central, State or Provincial Act; or
(d) any company; 12[R105] [or]
12[R106] [(e) any co-operative 13[R107] [society;
or]]
14[R108] [(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 India; or
(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); 15[R109] [or]
15[R110] [(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, 16[R111] [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:
17[R112] [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.]
18[R113] [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.]
19[R114] [20[R115] [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.]
21[R116] [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—
(i) any sum credited or paid in pursuance of any contract the
considera-tion for which does not exceed 22[R117] [twenty]
thousand rupees; or
(ii) any sum
credited or paid before the 1st day of June, 1972; 23[R118] [or]
23[R119] [(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.]
26[R122] [Insurance commission.
27[R123] 194D. 28[R124] 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:]
29[R125] [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.]
30[R126] [Payments to non-resident
sportsmen or sports associations.31[R127]
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.]
32[R128] [Payments in
respect of deposits under National Savings Scheme, etc.33[R129]
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.]
34[R130] [Payments on account of
repurchase of units by Mutual Fund or Unit Trust of India.35[R131]
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.]
36[R132] [Commission, etc., on the sale
of lottery tickets.37[R133]
194G. 38[R134] [(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.
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.]
41[R137] [Commission or brokerage42[R138] .
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 43[R139] [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 :
44[R140] [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)44a[R141] ;
(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.]
46[R143] 194-I. Any person, not being an individual or a Hindu
undivided family, who is responsible for paying to 46a[R144] [a resident] any income by way of rent47[R145] , 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, 48[R146] [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
:
49[R147] [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.]
50[R148] [Fees for professional or technical
services.51[R149]
52[R150] 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) :
53[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 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 :]
53a[R152] [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.]
(2) 53b[R153] [***]
(3) 53b[R154] [***]
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.
54[R155] [Income
in respect of units.55[R156]
194K. 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 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 55a[R157] [two thousand five hundred] rupees :
Provided further that the amount of one thousand*[R158] 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 :
55b[R159] [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.]
56[R160] [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:]
57[R161] [Provided further that no deduction
shall be made under this section from any payment made on or after the 1st day
of June, 2000.]
58[R162] 195.59[R163] [(1) 60[R164] Any person responsible for paying to a non-resident,
not being a company, or to a foreign company, any interest 60a[R165] [***] or any other sum chargeable under the provisions of this Act
(not being income chargeable under the head “Salaries” 61[R166] [***]) 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 :
62[R167] [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 :]
63[R168] [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 64[R169] [***] 64a[R170] [***] 65[R171] [***] 65a[R172] [***] 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 66[R173] [Assessing] Officer to determine, 67[R174] [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.
69[R176] [(3)
Subject to rules70[R177] made under sub-section (5), any person entitled
to receive any interest or other sum on which income-tax has to be deducted
under sub-section (1) may make an application in the prescribed form to the 71[R178] [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 72[R179] [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.]
73[R180] [Income payable “net of tax”.74[R181]
195A. 75[R182] [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.]
76[R183] [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 India, or
(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.]
77[R184] [Income in respect of units of
non-residents.78[R185]
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 :
79[R186] [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) “80[R187] 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.]
81[R188] [Income from units.82[R189]
196B. 83[R190] [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.]
84[R191] [Income from foreign currency bonds or
shares85[R192] of
Indian company.86[R193]
196C. 87[R194] [Where any income by way of interest or
dividends in respect of88[[R195] bonds or Global Depository Receipts] referred
to in section 115AC or by way of long-term capital gains arising from the
transfer of such 88[R196] [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 :
89[R197] [Provided that no such deduction shall be made in respect of any dividends
referred to in section 115-O.]
90[R198] [Income of Foreign Institutional
Investors from securities.91[R199]
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
:
92[R200] [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. 93[R201] (1) 94[R202] [Subject to rules made under sub-section (2A),
95[R203] [where, in the case of any income of any
person 95a[R204] [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, 96[R205] [194,] 194A, 96a[R206] [194C ,] 194D, 96a[R207] [194G] 97[R208] [, 194H] 98[R209] [, 194-I] 98a[R210] [, 194J] 99[R211] [, 194K] 1[R212] [***]and 195, the Assessing
Officer is satisfied] that the total income 2[R213] [***] of the recipient justifies the deduction
of income-tax 3[R214] [***] at any lower rates or no deduction of
income-tax 4[R215] [***], as the case may be, the 5[R216] [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 6[R217] [Assessing] Officer, deduct income-tax 7[R218] [***] at the rates specified in such
certificate or deduct no tax, as the case may be.
8[R219] [(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.]
10[R221] [No deduction to be made in certain
cases.
11[R222] 197A. 12[R223] (1) Notwithstanding
anything contained in 13[R224] [***] section 194 14[R225] [***] 15[R226] [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 13[R227] [***] section 194 16[R228] [17[R229] [***] 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 18[R230] [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.]
19[R231] [(1A)
Notwithstanding anything contained in 20[R232] [section 193 or] section 194A or section 194K,
no deduction of tax shall be made under 21[R233] [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 20[R234] [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.]
22[R235] [(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.]
22a[R236] [(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 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.]
(2) The person responsible for paying any income of the nature
referred to in sub-section (1) 23[R237] [or sub-section (1A)] 22a[R238] [or sub-section (1C)] shall deliver or cause to be delivered to the
24[R239] [Chief Commissioner or Commissioner] one copy
of the declaration referred to in sub-section (1) 24a[R240] [or sub-section (1A)] 24b[R241] [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 the provisions of 25[R242] [sections 192 to 194, section 194A 26[R243] [, section 194B] 27[R244] [, section 194BB] 26[R245] [, section 194C] 28[R246] [, section 194D 29[R247] [, section 194E] 30[R248] [, section 194EE, section 194F, section 194G,
section 194H, 31[R249] [section 194-I,] 32[R250] [section 194J, section 194K,] 33[R251] [section 194L,] section 195, section 196A 34[R252] [, section 196B] 35[R253] [, section 196C and section 196D]]]] shall,
for the purpose of computing the income of an assessee, be deemed to be income
received :
36[R254] [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.]
37[R255] 199. 38[R256] [(1)] Any
deduction made in accordance with the provisions of 39[R257] [sections 192 to 194, section 194A 40[R258] [, section 194B] 41[R259] [, section 194BB] 40[R260] [, section 194C] 42[R261] [, section 194D] 43[R262] [, section 194E] 44[R263] [, section 194EE, section 194F, section 194G,
section 194H, 45[R264] [section 194-I,] 46[R265] [section 194J, section 194K,] 47[R266] [section 194L,] section 195, section 196A 48[R267] [, section 196B] 49[R268] [, section 196C and section 196D]]]] and paid
to the Central Government shall be treated as a payment of 50[R269] [tax] on behalf of the person from whose
income the deduction was made, or of the owner of the security 51[R270] [, 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 52[R271] [***] 53[R272] [made under this Act for the assessment year
for which such income is assessable] :
(i) in a
case where such person or owner 55[R274] [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;
56[R275] (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 :
57[R276] [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.]]
58[R277] [(2) Any
sum referred to in sub-section (1A) of section 192 and 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.]
200. 59[R278] [(1)]
60[R279] Any person deducting any sum in accordance
with the provisions of 61[R280] [sections 192 to 194, section 194A 62[R281] [, section 194B] 63[R282] [, section 194BB] 62[R283] [, section 194C] 64[R284] [, section 194D] 65[R285] [, section 194E] 66[R286] [, section 194EE, section 194F, section 194G,
section 194H, 67[R287] [section 194-I,] 68[R288] [section 194J, section 194K,] 69[R289] [section 194L,] section 195, section 196A 70[R290] [, section 196B 71[R291] [, section 196C and section 196D]]]] shall pay
within the prescribed time, the sum so deducted to the credit of the Central
Government or as the Board directs.
72[R292] [(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.]
Consequences of failure to deduct or pay.73[R293]
201. (1) If any such person 74[R294] [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 75[R295] [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 76[R296] [Assessing] Officer is satisfied that such person
or principal officer or company, as the case may be, has 77[R297] [without good and sufficient reasons] failed
to deduct and pay the tax.
78[R298] [(1A)
79[R299] 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 80[R300] [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 81[R301] [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, 82[R302] [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 83[R303] [recover] tax by deduction under 84[R304] [sections 192 to 194, section 194A 85[R305] [, section 194B] 86[R306] [, section 194BB] 85[R307] [, section 194C] 87[R308] [, section 194D 88[R309] [, section 194E] 89[R310] [, section 194EE, section 194F, section 194G,
section 194H, 90[R311] [section 194-I,] 91[R312] [section 194J, section 194K,] 92[R313] [section 194L,] section 195, section 196A 93[R314] [, section 196B] 94[R315] [, section 196C and section 196D]]]] shall be
without prejudice to any other mode of recovery.
95[R316] [Certificate for tax deducted.
96[R317] 203. 97[R318] [(1)]
98[R319] Every person deducting tax in accordance with
the provisions of sections 192 to 194, section 194A 99[R320] [, section 194B] 1[R321] [, section 194BB] 2[R322] [, section 194C] 3[R323] [, section 194D] 4[R324] [,
section 194E] 5[R325] [, section 194EE, section 194F, section 194G,
section 194H, 6[R326] [section 194-I,] 7[R327] [section 194J, section 194K,] 8[R328] [section 194L,] section 195, section 196A 9[R329] [, section 196B 10[R330] [, section 196C and section 196D]]], 11[R331] [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.]
12[R332] [(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.]
13[R333] [Tax deduction account number.
203A. (1) Every person deducting tax in accordance
with the provisions of sections 192 to
194, section 194A, section 194B, section 194BB, section 194C, section 194D 14[R334] [, section 194E], 15[R335] [section 194EE, section 194F, section 194G,
section 194H, 16[R336] [section 194-I,] 17[R337] [section 194J, section 194K,] 18[R338] [section 194L,] section 195, section 196A 19[R339] [, section 196B 20[R340] [, section 196C and section 196D]]], if he has
not been allotted any tax-deduction account number, shall, within such time as
may be prescribed21[R341] , apply to the 22[R342] [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
206B23[R343] to any
income-tax authority; and
(d) in all other
documents pertaining to such transactions as may be prescribed in the interests
of revenue.]
Meaning
of “person responsible for paying”.
204. For
the purposes of 24[R344] [sections 192 to 194, section 194A 25[R345] [, section 194B] 26[R346] [, section 194BB] 27[R347] [, section 194C] 28[R348] [, section 194D] 29[R349] [, section 194E], 30[R350] [section 194EE, section 194F, section 194G,
section 194H, 31[R351] [section 194-I,] 32[R352] [section 194J, section 194K,] 33[R353] [section 194L,]] sections 195 to 203] and 34[R354] 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;
35[R355] [(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) 36[R356] [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.
37[R357] [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”38[R358] 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 39[R359] [sections 192 to 194, section 194A 40[R360] [, section 194B] 41[R361] [, section 194BB] 40[R362] [, section 194C] 42[R363] [, section 194D] 43[R364] [, section 194E], 44[R365] [section 194EE, section 194F, section 194G,
section 194H, 45[R366] [section 194-I,] 46[R367] [section 194J, section 194K,] 47[R368] [section 194L,] section 195, section 196A 48[R369] [, section 196B 49[R370] [, section 196C and section 196D]]]], the assessee
shall not be called upon to pay the tax himself to the extent to which tax has
been deducted from that income.
50[R371] [Persons deducting tax to furnish
prescribed returns.
51[R372] 206. 52[R373] [(1)]
The prescribed person53[R374] in the case of every office of Government,
the principal officer in the case of every company, the prescribed person53[R375] 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 54[R376] [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 authority55[R377] , such returns56[R378] in such form and verified in such manner and
setting forth such particulars as may be prescribed.]
57-58[R379] [(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 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 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 scheme :
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.
(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.]
Person paying interest to residents without deduction of tax, to
furnish prescribed return.
206A. 59[R380] [Omitted by the Finance (No. 2) Act, 1996,
w.e.f. 1-10-1996.]
Person paying dividend to certain residents without deduction of tax
to furnish prescribed return.
206B. 60[R381] [Omitted by the Finance (No. 2) Act, 1996,
w.e.f. 1-10-1996.]
61[R382] [BB.—Collection
at source
Profits and
gains from the business of trading in alcoholic liquor, forest produce, scrap,
etc.
62[R383] 206C. 63[R384] [64[R385] (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 amount65[R386] 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:]; |
67[R388] [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.]
68[R389] [(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 form 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.]
(2) The power to recover tax by collection
under sub-section (1) shall be without prejudice to any other mode of recovery.
(3) Any person collecting any amount under
sub-section (1) shall pay within 68a[R390] [the prescribed time]the amount so collected to the credit of the
Central Government or as the Board directs.
(4) Any amount collected in
accordance with the provisions of this section and paid under sub-section (3)
shall be deemed as payment of tax on behalf of the person from whom the amount
has been collected and credit shall be given to him for the amount so collected
on the production of the certificate furnished under sub-section (5) in the
assessment made under this Act for the assessment year for which such income is
assessable.
(5) Every person collecting tax in
accordance with the provisions of this section shall within 68b[R391] [such period as may be prescribed
from the time of debit]or receipt of
the amount furnish to the buyer to whose account such amount is debited or from
whom such payment is received, a certificate to the effect that tax has been
collected, and specifying the sum so collected, the rate at which the tax has
been collected and such other particulars as may be prescribed69[R392] .
70[R393] [(5A) Every person collecting tax in accordance
with the provisions of this section shall prepare half yearly returns for the
period ending on 30th September and 31st March in each financial year, and
deliver or cause to be delivered to the prescribed income-tax authority71[R394] such returns in such form and verified in
such manner and setting forth such particulars and within such time as may be
prescribed.72[R395] ]
73[R396] [(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 specified74[R397] 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.]
(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 75[R398] [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.]
76[R399] [(9) Where the
Assessing Officer is satisfied that the total income of the buyer justifies the
collection of the tax at any lower rate than the relevant rate specified in
sub-section (1), the Assessing Officer shall, on an application77[R400] made by the buyer 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).
(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.]
78[R401] [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,—
78a[R402] [(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]
78b[R403] [(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.]]
79[R404] [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 prescribed79a[R405] , apply to the Assessing Officer for the allotment
of a tax-collection account number79b[R406]
(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.]
C.—Advance payment of tax
80[R407] [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”.]
81[R408] [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 82[R409] [five thousand] rupees or more.]
209. 83[R410] [(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 84[R411] [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.]
85[R412] [(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 agricul-tural income to be taken into account in the case
of any assessee falling in that class, shall be—
(a) in cases 86[R413] [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
87[R414] [(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;]
88[R415] [(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 89[R416] [Assessing] Officer shall, for making an order
under 90[R417] [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
91[R418] [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.
92[R419] 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.]
93[R420] [Payment of advance tax by the assessee
of his own accord or in pursuance of order of Assessing Officer.
94[R421] 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 95[R422] [***], 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 form96[R423] 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.]
97[R424] [Instalments of
advance tax and due dates.98[R425]
211. 99[R426] [(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. 1[R427] [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1988.]
2[R428] Interest payable by Government.
3[R429] 214. (1) The
Central Government shall pay simple interest at 4[R430] [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 5[R431] [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 :
6[R432] [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.]
7[R433] [(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 8[R434] [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 9[R435] [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.
10[R436] [(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.]
11[R437] [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.]
12[R438] 215. 13[R439] [14[R440] (1) Where, in any financial year, an assessee has
paid 15[R441] [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 16[R442] [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 :]
17[R443] [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.]
18[R444] [(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.]
19[R445] [(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 20[R446] [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 21[R447] [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 prescribed22[R448] , the 21[R449] [Assessing] Officer may reduce or waive the interest payable by
the assessee under this section.
23[R450] [(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 24[R451] [, section 194C] 25[R452] [, section 194D] 26[R453] [, 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.]
27[R454] [(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.]
28[R455] Interest payable by assessee in case of
under-estimate, etc.
29[R456] 216. Where, on making the regular
assessment, the 30[R457] [Assessing] Officer finds that any assessee has—
31[R458] [(a)
under 32[R459] [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 33[R460] [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.
34[R461] 217. 35[R462] [(1) Where, on making the regular
assessment, 36[R463] [the 37[R464] [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 38[R465] [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 39[R466] [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.]
40[R467] [(1A) Where,
on making the regular assessment, the 41[R468] [Assessing] Officer finds that 42[R469] [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 43[R470] [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 44[R471] [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. 45[R472] [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 therefor shall be given to the assessee in the
regular assessment.
D.—Collection and recovery
When tax payable and when assessee deemed in default.
47[R474] 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 48[R475] [thirty] days of the service of the notice at
the place and to the person mentioned in the notice :
Provided that, where the 49[R476] [Assessing] Officer has any reason to believe
that it will be detrimental to revenue if the full period of 50[R477] [thirty] days aforesaid is allowed, he may,
with the previous approval of the 51[R478] [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 52[R479] [thirty] days aforesaid, as may be specified
by him in the notice of demand.
53[R480] (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 54-55[R481] [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 :]
56[R482] [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 57[R483] [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
:]
58[R484] [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.]
59[R485] [(2A) Notwithstanding
anything contained in sub-section (2), 60[R486] [the 61[R487] [Chief Commissioner or Commissioner] may]
reduce or waive the amount of interest 62[R488] [paid or] payable by an assessee under the
said sub-section if 63[R489] [he is satisfied] that—
(i) payment of such amount 64[R490] [has caused or] would cause genuine hardship
to the assessee ;
(ii) default in the payment of the amount on which interest 64[R491] [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)65[R492] , on an application made by the assessee
before the expiry of the due date under sub-section (1), the 66[R493] [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 67[R494] [or section 246A] the 68[R495] [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 68[R496] [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.
69[R497] 221. 70[R498] [(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 arrears71[R499] 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 72[R500] [Assessing] Officer may direct71[R501] , and in the case of a continuing default,
such further amount or amounts as the 72[R502] [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 :
73[R503] [Provided further that where the
assessee proves to the satisfaction of the 74[R504] [Assessing] Officer that the default was for good and sufficient
reasons75[R505] , no penalty shall be levied under this
section.]
76[R506] [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. 77[R507] [(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 form78[R508] 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.
79[R509] [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.]
80[R510] [(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.]
81[R511] [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 manner82[R512] 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.]
83[R513] [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.]
84[R514] [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 reduced85[R515] 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. 86[R516] [(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 87[R517] [Assessing] Officer 88[R518] [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)88a,[R519] shall be exempt from any requisition
made under this sub-section.
(3) (i) The 89[R520] [Assessing] Officer 90[R521] [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 due91[R522] to the assessee or any person who holds or
may subsequently hold money92[R523] for or on account of the assessee to pay to
the 93[R524] [Assessing] Officer 94[R525] [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 93[R526] [Assessing] Officer 94[R527] [or Tax Recovery Officer], and in the case of
a joint account to all the joint holders at their last addresses known to the 93[R528] [Assessing] Officer 94[R529] [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 95[R530] [Assessing] Officer 96[R531] [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 95[R532] [Assessing] Officer 96[R533] [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 95[R534] [Assessing] Officer 96[R535] [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 95[R536] [Assessing] Officer 96[R537] [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 95[R538] [Assessing] Officer 96[R539] [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 95[R540] [Assessing] Officer 96[R541] [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.
97[R542] [(5) The 95[R543] [Assessing] Officer 96[R544] [or Tax Recovery Officer] may, if so
authorised by the 98[R545] [Chief Commissioner or Commissioner] by
general or special order, recover any arrears of tax due from an assessee by
distraint and sale of his movable property in the manner laid down in the Third
Schedule.]
Recovery
through State Government.
227. If
the recovery of tax in any area has been entrusted to a State Government under
clause (1) of article 258 of the Constitution, the State Government may direct,
with respect to that area or any part thereof; that tax shall be recovered
therein with, and as an addition to, any municipal tax or local rate, by the
same person and in the same manner as the municipal tax or local rate is
recovered.
Recovery
of Indian tax in Pakistan and Pakistan tax in India.
228. 99[R546] [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1989.]
1[R547] [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 2[R548] [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.
3[R549] [(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.
4[R550] 230. 5[R551] [(1) Subject
to such exceptions as the Central Government may, by notification 6[R552] in the Official Gazette, specify in this
behalf, no person,—
(a) who is not domiciled in India;
(b) who has come to India in connection with business,
profession or employment; and
(c) who has income derived from any source in India, shall leave
the territory of India by land, sea or air unless he furnishes to such
authority 7[R553] as may be prescribed—
(i) an
undertaking in the prescribed form 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 authority
shall, on receipt of the undertaking, immediately give to such person a no
objection certificate, for leaving India:
Provided that nothing contained in sub-section (1)
shall apply to a person who is not domiciled in India but visits India as a
foreign tourist or for any other purpose not connected with business,
profession or employment.
(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 form to the income-tax authority
or such other authority as may be prescribed—
(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 India;
(c) the estimated period of his stay outside India:
Provided that no person—
(i) who is domiciled in India at the time of his departure; and
(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*[R554] 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)7a[R555] [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 8[R556] [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.
9[R557] (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. 10[R558] [Omitted by the Finance Act, 2001, w.e.f.
1-6-2001.]
Period
for commencing recovery proceedings.
231. 11[R559] [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 12[R560] [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. 13[R561] [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1989.]
14[R562] [F.—Interest
chargeable in certain cases15[R563]
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 shall16[R564] be liable to pay simple interest at the rate of 17-18[R565] [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 19[R566] [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.
20[R567] [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 20a[R568] [or section 153A], the assessment so made shall be regarded as
a regular assessment for the purposes of this section.
Explanation 4.—21[R569] [* * *]
(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 21a[R570] [or
section 153A] issued 22[R571] [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 23-24[R572] [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 24a[R573] [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 25[R574] [under sub-section (1) of section 143 or] on
the basis of the earlier assessment aforesaid.
(4) Where as a result of an order under section 154 or section
155 or section 250 or section 254 or section 260 or section 262 or section 263
or section 264 or an order of the Settlement Commission under sub-section (4)
of section 245D, the amount of tax on which interest was payable under
sub-section (1) or sub-section (3) of this section has been increased or
reduced, as the case may be, the interest shall be increased or reduced accordingly,
and—
(i) in a
case where the interest is increased, the Assessing Officer shall serve on the
assessee a notice of demand in the prescribed form specifying the sum payable,
and such notice of demand shall be deemed to be a notice under section 156 and
the provisions of this Act shall apply accordingly;
(ii) in a case where
the interest is reduced, the excess interest paid, if any, shall be refunded.
(5) The provisions of this section shall apply in respect of
assessments for the assessment year commencing on the 1st day of April, 1989
and subsequent assessment years.]
27[R576] [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 shall28[R577] be liable to pay simple interest at the rate of 29-30[R578] [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 31[R579] [to the date of determination of total income
under sub-section (1) of section 143 32[R580] [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.
33[R581] [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 33a[R582] [or section 153A], the assessment so made shall be regarded as
a regular assessment for the purposes of this section.
34[R583] [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 35[R584] [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 35a
[R585] [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 36-37[R586] [one] per cent for every month or part of a month
comprised in the period commencing on the day following 38[R587] [the date of determination of total income
under sub-section (1) of section 143 39[R588] [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
35a[R589] [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 38[R590] [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.]
41[R592] [Interest for deferment of
advance tax.
234C. (1) 42[R593] [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 shall43[R594] be
liable to pay simple interest at the rate of 44[R595] [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 44[R596] [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 45[R597] [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 45[R598] [one] per cent on the amount of the shortfall from the tax due on the returned income :]
46[R599] [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 47[R600] [remaining
installments of advance tax which are due or where no such instalments are
due], by the 31st day of March of the financial year:]
48[R601] [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 instalment of advance tax due on the 15th day of June,
2000, the 15th day of September, 2000 and the 15th day of December,
2000 :]
49[R602] [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 instalment 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 50[R603] [or payable], as reduced by 51[R604] [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.]]
51a[R605] [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 51b[R606] [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, Circular No. 232, dated 26-11-1977; Circular No. 141, dated 23-7-1974 and Circular No. 1/2002, dated 4-2-2002.
[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, Order [F. No. 35/68-IT (A-I)], dated
15-11-1972, Circular No. 196, dated 31-3-1976, Circular No. 501, dated
20-1-1988, Circular No. 504, dated 8-2-1988, Circular No. 483, dated 4-3-1987,
Circular No. 147, dated 28-10-1974, Letter [F. No. 237/4/75-A & PAC],
dated 23-11-1976, Circular No. 90, dated 26-6-1972, Circular No. 272, dated
27-5-1980, Circular No. 285, dated 21-10-1980, Circular No. 38-D(LXII-1),
dated 9-7-1951, Circular No. 586, dated 28-11-1990, Circular No. 690, dated
1-9-1994, Circular No. 707, dated 11-7-1995, Circular No. 747, dated 2-12-1996,
Circular No. 756, dated 10-10-1997, Circular No. 757, dated 20-10-1997,
Circular No. 758, dated 7-11-1997, Circular No. 761, dated 13-1-1998, Circular
No. 764, dated 20-2-1998, Circular No. 771, dated 3-11-1998, Circular No. 775,
dated 26-3-1999, Circular No. 781, dated 5-11-1999, Circular No. 798, dated
30-10-2000, Circular No. 4/2001, dated 12-2-2001, Circular No. 15/2001, dated
12-12-2001, Circular No. 1/2002, dated 4-2-2002 and 13/2002, dated 23-12-2002.
[R9]See
rules 26A, 28(1), 28AA, 30, 31, 33 and 37 and Form Nos. 12B, 12BA, 13, 15AA,
16, 22 and 24.
[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. See rule 21AA and Form No. 10E
[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), as inserted by the
Finance Act, 1987, w.e.f. 1-6-1987, read as under :
‘(2B) Where an assessee who receives any income chargeable
under the head “Salaries” has, in addition, any income chargeable under any
other head of income (not being a loss under any such head) for the same
financial year, he may send to the person responsible for making the payment
referred to in sub-section (1) the particulars of such other income and of any
tax deducted thereon under any other provision of this Chapter, in such form
and verified in such manner as may be prescribed, and thereupon the person
responsible as aforesaid shall take such other income and the tax, if any,
deducted thereon also into account for the purposes of making the deduction
under sub-section (1) :
Provided that this sub-section shall not in any case have the effect of reducing the tax deductible from the income under the head “Salaries” below the amount that would be so deductible if the other income and the tax deducted thereon had not been taken into account.’
[R20]See rule 26B and Form No. 12C.
[R21] Inserted by the Finance Act, 2001, w.e.f.
1-6-2001.
[R22]See rule
26A and Form No. 12BA.
[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 and Form No. 22.
[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, 29C, 30, 31, 37 and 37A and Form Nos. 13, 15AA, 15H, 16A, 25 and 27.
[R30] See also Circular No. 2, dated 6-2-1969,
Circular No. 2-P(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 and Circular No. 3/2003, dated 11-3-2003.
[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, as inserted by
the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991, read as under
:
“Provided that where, in the case of a scheduled bank, the Central Government is satisfied that the total income of the bank justifies deduction of income-tax at a lower rate, it may, by notification in the Official Gazette, specify the rate at which deduction of income-tax shall be made in the case of such bank under this section and such notification shall, at any one time, have effect for such assessment year or years, not exceeding three assessment years, as may be specified in the notification:”
[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]Word
“further” omitted by the Finance Act, 1992, w.e.f. 1-6-1992. Earlier, “further”
was inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.
[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. Prior to its
omission, clause (ii) stood as under :
“(ii) any interest payable
on National Savings Certificates (First Issue); or”
[R41]Inserted
by the Finance Act, 1970, w.e.f. 1-4-1970.
[R42]Substituted for the
following clause (iib), which was inserted by the Finance Act, 1970,
w.e.f. 1-4-1970, by the Finance Act, 1986, w.e.f. 1-6-1986 :
“(iib) any interest payable on such debentures, issued by any co-operative society (including a co-operative land mortgage bank or a co-operative land development bank) or any other institution or authority, as the Central Government may, by notification in the Official Gazette, specify in this behalf; or”
[R43]For specified
debentures/bonds, see
Direct Taxes Circulars.
[R44]Explanation omitted by the Finance
Act, 1987, w.e.f. 1-4-1987. Omitted Explanation, which was inserted,
while substituting clause (iib), by the Finance Act, 1986, w.e.f.
1-4-1986, read as under :
‘Explanation.—For the purposes of this clause, “public sector company” means any corporation established by or under any Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956); or’
[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 and Circular No. 3P(XXI-19), dated
1-5-1966, Circular No. 3/2002, dated 28-6-2002, Circular No. 6/2002, dated
2-8-2002, Circular No. 11/2002, dated 22-11-2002 and Circular No. 2/2003, dated
11-3-2003.
[R54]See
rules 27, 28(1), 29, 29C, 30, 30A, 31, 37 and 37A and Form Nos. 13, 15, 15B,
15G, 16A, 26 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.”
Earlier second proviso, prior to its omission by the Finance Act, 1993, w.e.f. 1-6-1993, was amended by the Finance Act, 1965, w.e.f. 1-4-1965, 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.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. 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. 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, 29C, 30, 31 and 37 and Form Nos. 13, 15AA, 15H, 16A and 26A.
[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), as amended
by the Finance Act, 1968, w.e.f. 1-4-1968, read as under :
“(2) The statement in writing referred to
in sub-section (1) shall also contain such other particulars as may be
prescribed, be verified in the prescribed manner, be signed in the presence
of—
(a) a Member of Parliament or a State Legislature; or
(b) a Member of a District Council or a Metropolitan Council, a
Municipal Corporation or Municipal Committee; or
(c) a Gazetted Officer of the Central or a State Government; or
(d) an officer of any banking company (including a co-operative
bank) of the rank of sub-agent, agent or manager,
and bear an attestation by such member or officer to the effect that the person who has signed the statement is known to him.”
[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.
[R78]For
complete list of notified institutions,
[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), as substituted for clauses (vii) and
(viia) by the Finance Act, 1992, w.e.f. 1-6-1992, which were earlier
substituted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991, read as under :
“(vii) to such income credited or paid in respect of deposits with a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act), or with a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank);”
[R84]Inserted
by the Finance Act, 1975, w.e.f. 1-4-1975.
[R85]Inserted
by the Finance Act, 2003, w.r.e.f. 1-6-2003.
[R86]Inserted
by the Finance Act, 1995, w.e.f. 1-7-1995.
[R87]Inserted
by the Finance Act, 1975, w.e.f. 1-4-1975.
[R88]Prior to omission, Explanation
read as under :
‘Explanation.—In this section, “Gazetted Officer” includes a Tehsildar or a Mamlatdar of a Taluka or Tehsil or any other officer performing functions similar to those of a Tehsildar or Mamlatdar.’
[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 and 37 and Form Nos. 16A and 26B.
[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 and 37 and Form Nos. 16A
and 26BB.
[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,
Circular No. 716, dated 9-8-1995, Circular No. 720, dated 30-8-1995 and
Circular No. 723, dated 19-9-1995. For details,
[R103] See rules 28, 30, 31 and 37 and Form Nos.
13C, 16A and 26C.
[R104]For the meaning of the
expression “carrying out any work”,
[R105]Inserted
by the Finance Act, 1973, w.e.f. 1-4-1973.
[R106] Inserted by the Finance Act, 1973, w.e.f.
1-4-1973.
[R107] Substituted for the word “society,” by the Finance Act, 1992, w.e.f.
1-6-1992.
[R108]Inserted
by the Finance Act, 1992, w.e.f. 1-6-1992.
[R109]Inserted
by the Finance Act, 1995, w.e.f. 1-7-1995.
[R110]Inserted by the Finance Act, 1995, w.e.f. 1-7-1995.
[R111]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.
[R112]Inserted
by the Finance Act, 2002, w.e.f. 1-6-2002.
[R113] Inserted by the Finance Act, 1994, w.e.f.
1-6-1994.
[R114]Inserted
by the Finance Act, 1988, w.e.f. 1-6-1988.
[R115]Renumbered
by the Finance Act, 1994, w.e.f. 1-6-1994.
[R116]Inserted
by the Finance Act, 1995, w.e.f. 1-7-1995.
[R117]Substituted
for “ten” by the Finance Act, 1995, w.e.f. 1-7-1995. Earlier “ten” was
substituted for “five” by the Finance Act, 1982, w.e.f. 1-6-1982.
[R118]Inserted
by the Finance Act, 1973, w.e.f. 1-4-1973.
[R119]. Inserted by the Finance Act, 1973, w.e.f.
1-4-1973.
[R120] 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.”
[R121]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.”
[R122] Inserted by the Finance Act, 1973, w.e.f.
1-4-1973.
[R123]See
also Circular No. 120, dated 8-10-1973.
[R124]See
rules 28(1), 28AA, 30, 31 and 37 and Form Nos. 13, 15AA, 16A and 26D.
[R125]Inserted
by the Finance Act, 1987, w.e.f. 1-6-1987.
[R126]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.
[R127] See rules 30, 31 and 37A and Form Nos. 16A
and 27.
[R128]Inserted
by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.
[R129]See
rules 29C, 30, 31 and 37 and Form Nos. 15-I, 16A and 26F.
[R130]Inserted
by the Finance Act, 1990, w.e.f. 1-4-1991.
[R131] See rules 30, 31 and 37 and Form Nos. 16A
and 26G.
[R132]Inserted
by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.
[R133] See rules 30, 31 and 37 and Form Nos. 16A
and 26H.
[R134]Renumbered by the Finance Act, 1992, w.e.f. 1-6-1992.
[R135]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, 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.’’
[R136]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, 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.”
[R137]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, as 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.
[R138]. See rules 30, 31 and 37 and Form Nos. 13,
15AA, 16A and 26-I.
[R139]. Substituted for “ten” by the Finance Act, 2002,
w.e.f. 1-6-2002.
[R140]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002.
[R141]For
definition of the term “security”
[R142] Inserted by the Finance Act, 1994, w.e.f.
1-6-1994.
[R143] 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, 30, 31 and 37
and Form Nos. 13, 15AA, 16A and 26J.
[R144]Substituted
for “any person” by the Finance Act, 2003, w.e.f. 1-6-2003.
[R145]For
the meaning of the term “rent”,
[R146] Substituted for “deduct income-tax thereon at the rate of twenty per cent:” by the Finance Act, 1995, w.e.f. 1-7-1995.
[R147] Inserted by the Finance Act, 2002, w.e.f.
1-6-2002.
[R148]Sections
194J and 194K inserted by the Finance Act, 1995, w.e.f. 1-7-1995.
[R149] See rules 28(5), 30, 31 and 37 and Form
Nos. 13E, 16A and 26K.
[R150]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.
[R151]Inserted
by the Finance Act, 2002, w.e.f. 1-6-2002.
[R152]Inserted
by the Finance Act, 2003, w.e.f. 1-6-2003.
[R153]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.”
[R154]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.”
[R155] 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.’
[R156] See rules 28(1), 28AA, 29C-(3),
30, 31, 37 and Form Nos. 13, 15AA, 15H, 16A & 26. See also Circular
No. 715, dated 8-8-1995, Circular No. 716, dated 9-8-1995, 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.
[R157]Substituted
for “one thousand” by the Finance Act, 2003,
w.r.e.f. 1-8-2002.
[R158]Words “two thousand five hundred” should be substituted for the words “one thousand”.
[R159]. Inserted
by the Finance Act, 2003, w.e.f. 1-4-2003.
[R160] Inserted by the Finance Act, 1999, w.e.f.
1-6-1999. See also rules 28 and 28AA and Form Nos. 13 & 15AA.
[R161] Inserted by the Finance Act, 2000, w.e.f. 1-6-2000.
[R162]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, A.D.
(M.A. Series) Circular No. 48, dated 29-11-1997 issued by RBI, Circular No.
767, dated 22-5-1998, Circular No. 769, dated6-8-1998, Circular No. 786, dated
7-2-2000, Circular No. 790, dated 20-4-2000 and Circular No. 10/2002, dated
9-10-2002.
[R163]Substituted by the Finance Act, 1987, w.e.f.
1-6-1987. Prior to substitution, sub-section (1) [as amended by the Finance
Act, 1965, w.e.f. 1-4-1965 and the Finance Act, 1975, w.e.f. 1-4-1975] read as under :
‘(1) Any person responsible for paying to a non-resident, not
being a company, or to a company which is neither an Indian company nor a
company which has made the prescribed arrangements for the declaration and
payment of dividends within India, any interest, not being “Interest on
securities”, or any other sum, not being dividends, chargeable under the
provisions of this Act, shall, at the time of payment, unless he is himself
liable to pay any income-tax thereon as an agent, deduct income-tax thereon at the
rates in force :
Provided that nothing in this
sub-section shall apply to any payment made in the course of transactions in
respect of which a person responsible for the payments is deemed under the
proviso to sub-section (1) of section 163 not to be an agent of the payee :
Provided further that the deduction of income-tax from any sum, being income chargeable under the head “Capital gains” relating to capital assets other than short-term capital assets, paid to a company which is neither an Indian company nor a company which has made the prescribed arrangements for the declaration and payment of dividends within India, shall be of an amount equal to the amount of income-tax on such sum calculated in accordance with the provisions of clause (i) of section 115.’
[R164] See rules 26, 28(1), 28AA, 29B, 30, 31 and
37A and Form Nos. 13, 15AA, 15C, 15D, 15E, 16A and 27.
[R165]Words “(not being interest on securities)” omitted by the Finance Act, 2003, w.e.f. 1-6-2003.
[R166]Words “or dividends” omitted
by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.
[R167]Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, with retrospective effect from 1-6-1987.
[R168]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.
[R169]“interest including” omitted by the Finance Act, 1976, w.e.f. 1-6-1976.
[R170]. Words
“interest on securities” omitted by the Finance Act, 2003, w.e.f. 1-6-2003.
[R171]Words
“, dividend” omitted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.
[R172]. Word
“and” omitted by the Finance Act, 2003, w.e.f. 1-6-2003.
[R173]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R174]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.
[R175] Omitted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991. Prior to
omission, proviso as inserted by the Finance Act, 1987, w.e.f. 1-6-1987, read
as under :
“Provided that this sub-section shall not apply to any payment to a foreign company by way of interest referred to in clause (v), or royalty referred to in clause (vi), or fees for technical services referred to in clause (vii), of sub-section (1) of section 9.”
[R176] Inserted by the Finance Act, 1970, w.e.f.
1-4-1970.
[R177]See
rule 29B and Form Nos. 15C to 15E.
[R178]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R179]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R180]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.
[R181]See
also Circular No. 785, dated 24-11-1999. For details see
Income-tax Act.
[R182]Substituted for “Where, under an agreement” by the Finance Act, 2002, w.e.f. 1-6-2002.
[R183] 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.
[R184] Substituted by
the Finance Act, 1995, w.e.f. 1-7-1995. Prior to its substitution, section
196A, as 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, read as under :
“196A.
Tax not to be deducted from any income payable to unit holders of Mutual
Fund.— (1) Subject to the provisions of sub-section (2), no deduction of tax
shall be made from any income payable in respect of units of a Mutual Fund,
specified under clause (23D) of section 10, to its unit holders being
persons other than foreign companies.
(2) Where any income referred to in
sub-section (1) is payable to a unit holder, being a foreign company, the
person responsible for making the payment shall, at the time of credit of such
income to the account of the payee or at the time of payment thereof in cash or
by the issue of a cheque or draft or by any other mode, whichever is earlier,
deduct income-tax thereon at the rate of twenty per cent.
(3) Notwithstanding anything contained
in this Act, no deduction of tax shall be made from any income payable in
respect of units issued under any scheme of the Unit Trust of India established
under section 3 of the Unit Trust of India Act, 1963 (52 of 1963), 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.”
[R185]See rules 30, 31 and 37A and Form Nos. 16A and 27.
[R186]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.
[R187]For
definition of “foreign currency”
[R188]Inserted
by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.
[R189] See rules 30, 31 and 37A and Form Nos. 16A
and 27.
[R190]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.
[R191]Inserted
by the Finance Act, 1992, w.e.f. 1-6-1992.
[R192]Should
be read as ‘bonds or global depository receipts’.
[R193] See rules 30, 31 and 37A and Form Nos. 16A and 27.
[R194].
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.
[R195]Substituted
for "bonds or shares" by the Finance Act, 2001, w.e.f. 1-4-2002.
[R196]Substituted
for "bonds or shares" by the Finance Act, 2001, w.e.f. 1-4-2002.
[R197]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.
[R198]Inserted
by the Finance Act, 1993, w.e.f. 1-6-1993.
[R199]See
rules 30, 31 and 37A and Form Nos. 16A and 27.
[R200] 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.
[R201]See rules 28(1), 28AA and
29 and Form Nos. 13, 15 and 15AA.
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, Circular No. 761, dated 13-1-1998 and Circular No. 774, dated 17-3-1999.
[R202]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.
[R203]Substituted by the
Finance Act, 1992, w.e.f. 1-6-1992, for the following :
“where, in the case of any income of any person other than a
company,—
(a) income-tax
is required to be deducted at the time of credit or, as the case may be, at the
time of payment at the rates in force under the provisions of sections 192,
193, 194A, 194D and 195,
(b) being a
non-resident, income-tax is required to be deducted at the time of payment at
the rates in force under the provisions of section 194,
the
Assessing Officer is satisfied.”
Earlier, several amendments were made in the substituted portion 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.
[R208]Inserted by the Finance Act, 2001, w.e.f. 1-6-2001.
[R211]Inserted by the Finance Act, 1995, w.e.f. 1-7-1995.
[R212] “,
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.
[R215] Words "or super-tax" omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
[R216]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1988.
[R217]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1988.
[R220] Sub-section (3) omitted by the Finance Act, 1986, w.e.f. 1-4-1987.
Prior to its omission, sub-section (3), as substituted by the Finance (No. 2)
Act, 1967, w.e.f. 1-4-1968, stood as under :
“(3) Where the principal officer of a company considers that, by reason of the provisions of section 80K, the whole or any portion of the dividend referred to in section 194 will be deductible in computing the total income of the recipient, he may, before paying the dividend to the shareholder or issuing any cheque or warrant in respect thereof, make an application to the Income-tax Officer to determine the appropriate proportion of the dividend to be deducted under the provisions of section 80K; and on such determination by the Income-tax Officer no tax shall be deducted on such proportionate amount.”
[R222]See also Circular No. 351, dated 26-11-1982 and Circular No. 4/2002, dated 16-7-2002.
[R223]See
rule 29C and Form Nos. 15G, 15H and 15-I.
[R224] Words “section 193 or” omitted by the
Finance Act, 1999, w.e.f. 1-6-1999.
[R225]Words
“or section 194A” omitted by the Finance Act, 1992, w.e.f. 1-6-1992.
[R226]Inserted
by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.
[R227] Words “section 193 or” omitted by the
Finance Act, 1999, w.e.f. 1-6-1999.
[R228] Substituted for “or, as the case may be,
section 194A” by the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1988.
[R229]. Words “or section 194A” omitted by the Finance Act, 1992, w.e.f. 1-6-1992.
[R230]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.
[R231]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.”
[R248]Substituted for “section
195 and section 196A” by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.
[R253] Substituted for “and section 196C” by the Finance Act, 1993, w.e.f. 1-6-1993.
[R258]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R260] Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R263]Substituted for “section
195 and section 196A” by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.
[R269]Substituted for “income-tax
or super-tax, as the case may be,” by the Finance Act, 1965, w.e.f. 1-4-1965.
[R271]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.
[R272] Substituted for “made for the immediately following assessment year
under this Act” by the Finance Act, 1987, w.e.f. 1-6-1987.
[R276] 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.”
[R277]Inserted
by the Finance Act, 2002, w.e.f. 1-6-2002.
[R278]Section
200 renumbered as sub-section (1) thereof by the Finance Act, 2002, w.e.f.
1-6-2002.
[R279]See
rule 30.
[R280] Substituted for “sections 192 to 195” by the
Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
[R281]Inserted
by the Finance Act, 1972, w.e.f. 1-4-1972.
[R282] Inserted by the Finance Act, 1978, w.e.f.
1-4-1978.
[R283]Inserted
by the Finance Act, 1972, w.e.f. 1-4-1972.
[R284] Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R285]Inserted
by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-11-1989.
[R286] Substituted for “section 195 and section 196A” by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.
[R287]Inserted
by the Finance Act, 1994, w.e.f. 1-6-1994.
[R288]Inserted
by the Finance Act, 1995, w.e.f. 1-7-1995.
[R289] Inserted by the Finance Act, 1999, w.e.f.
1-6-1999.
[R290]Substituted
for “and section 196B” by the Finance Act, 1992, w.e.f. 1-6-1992.
[R291] Substituted for “and section 196C” by the Finance Act, 1993, w.e.f.
1-6-1993.
[R292]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002.
[R293]See
also Circular Nos. 685, 686 and 696, dated 17-6-1994, 12-8-1994 and 28-2-1995,
respectively.
[R294]Inserted by the Finance Act,
2002, w.e.f. 1-6-2002.
[R295]Inserted by the Finance Act,
2001, w.r.e.f. 1-4-1962.
[R296]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R297]Substituted
for “wilfully” by the Finance Act, 1966, w.e.f. 1-4-1966.
[R298] Inserted by the Finance Act, 1966, w.e.f. 1-4-1966.
[R299]See
rule 119A.
[R300] Inserted by the Finance Act, 2001, w.r.e.f. 1-4-1962.
[R301]Substituted by the Taxation Laws (Amendment) Act,
2003, w.r.e.f. 8-9-2003, substituted for “eighteen” by the Finance Act,
2001 w.e.f. 1-6-2001. 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.
[R306]Inserted by the Finance Act, 1978, w.e.f. 1-4-1978.
[R307]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R308]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R309] Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-11-1989.
[R310] Substituted for “section 195 and section 196A” by the Finance (No.
2) Act, 1991, w.e.f. 1-10-1991.
[R317]See also Circular No. 664, dated 29-9-1993,
Circular No. 749, dated 27-12-1996, Circular No. 761, dated 13-1-1998 and Circular
No.785, dated 24-11-1999.
[R320]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R323]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R325]Substituted for “section
195 and section 196A” by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.
[R327]Inserted by the Finance Act, 1995, w.e.f. 1-7-1995
[R328]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R329]Substituted for “and section 196B” by the Finance Act, 1992, w.e.f. 1-6-1992
[R331]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
[R333]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987. See rule 114A and Form No. 49B.
[R334]Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-11-1989.
[R335]Substituted for “section
195 and section 196A” by the Finance (No. 2) Act, 1991, w.e.f.
1-10-1991.
[R336]Inserted by the Finance Act, 1994, w.e.f. 1-6-1994
[R337]Inserted by the Finance Act, 1995, w.e.f. 1-7-1995.
[R338]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R339]Substituted for “and section 196B” by the Finance Act, 1992, w.e.f. 1-6-1992.
[R341]See rule 114A and Form No. 49B for application for TAN. See Appendix Two for an analysis of rule 114A.
[R342]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R343]Sections 206A and 206B have since been omitted by the Finance (No. 2) Act, 1996, w.e.f. 1-10-1996
[R344]Substituted for “sections 192 to 203” by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967
[R345]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R346]Inserted
by the Finance Act, 1978, w.e.f. 1-4-1978.
[R347]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R348]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R349]Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-11-1989.
[R350]Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991
[R351]Inserted by the Finance Act, 1994, w.e.f. 1-6-1994.
[R352]Inserted by the Finance Act, 1995, w.e.f. 1-7-1995.
[R353]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R355]Inserted by the Finance Act, 1986, w.e.f. 1-6-1986.
[R356]Substituted for “in the case of payments” by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
[R357]Inserted
by the Finance Act, 1986, w.e.f. 1-6-1986.
[R358]For definition of “authorised dealer”
[R359]Substituted for “sections 192 to 195” by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967
[R360]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972
[R361]Inserted by the Finance Act, 1978, w.e.f. 1-4-1978
[R362]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972
[R363]Inserted by the Finance Act, 1973, w.e.f. 1-4-1973.
[R364]Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-11-1989.
[R365]Substituted for “section 195 and section 196A” by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.
[R366]Inserted by the Finance Act, 1994, w.e.f. 1-6-1994.
[R367]Inserted by the Finance Act, 1995, w.e.f. 1-7-1995.
[R368]Inserted
by the Finance Act, 1999, w.e.f. 1-6-1999.
[R369]Substituted
for “and section 196B” by the Finance Act, 1992, w.e.f.
1-6-1992.
[R370]Substituted for “and section 196C” by the Finance Act, 1993, w.e.f. 1-6-1993
[R371]Substituted by the Finance Act, 1987, w.e.f. 1-6-1987. Prior to its substitution, section 206, as
amended by the Finance Act, 1965, w.e.f. 1-4-1965,
stood as under :
‘206. Person paying salary to furnish
prescribed return.—(1) The prescribed person in the case of every office of
the Government, the principal officer in the case of every company, the
prescribed person in the case of every local authority or other public body or
association, and every private employer shall prepare, and within thirty days
from the 31st day of March in each year, deliver or cause to be delivered to
the Income-tax Officer in the prescribed form and verified in the prescribed
manner, a return in writing showing—
(a) the name and, so
far as it is known, the address of every person who was receiving on the 31st
day of March, or has received or to whom was due during the year ending on that
date, from the Government, company, authority, body, association or private
employer, as the case may be, any income chargeable under the head “Salaries”
of such amount as may be prescribed;
(b) the amount of the income so received by or so due to each
such person, and the time or times at which the same was paid or due, as the
case may be;
(c) the amount deducted in respect of income-tax from the income
of each such person.
(2) Where an employer deducts from the emoluments paid to an employee or pays on his behalf any contributions of that employee to an approved superannuation fund, he shall include all such deductions or payments in the return which he is required to furnish under this section.’
[R372]See also Circular No. 719, dated 22-8-1995, Circular No. 744, dated 6-5-1996, Circular No. 796, dated 10-10-2000 and Circular No. 797, dated 10-10-2000.
[R373]Section 206 renumbered as sub-section (1) by the Finance Act, 1997, w.e.f. 1-4-1997
[R374]See rule 36 for prescribed persons
[R375]See rule 36 for prescribed persons
[R376]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.
[R377]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.
[R378]See rules 36 and 37 and Form Nos. 24, 25, 26, 26A, 26B, 26BB, 26C, 26D, 26F, 26G, 26H, 26-I, 26J and 26K. Also see rule 37A and Form No. 27.
[R379]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.”
*See rule 37B and Form No. 27A.
[R380]Prior to its omission, section 206A, as inserted by
the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967 and
later on amended by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, 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.”
[R381]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.”
[R382]Inserted by the Finance Act, 1988, w.e.f. 1-6-1988.
[R383]See
also Circular No. 585, dated 27-11-1990. For details, see Income-tax Act.
[R384]Substituted for the
following by the Finance Act, 1992, w.e.f. 1-4-1992.
Earlier it was amended by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-6-1988 :
“(1)
Every person, being a seller referred to in section 44AC, shall, at the time of
debiting of the amount payable by the buyer referred to in that section to the
account of the buyer or at the time of receipt of such amount from the said
buyer in cash or by the issue of a cheque or draft or by any other mode,
whichever is earlier, collect from the buyer of any goods of the nature specified
in column (2) of the Table below, a sum equal to the percentage, specified in
the corresponding entry in column (3) of the said Table, of such amount as
income-tax on income comprised therein.
TABLE
Sl. No. Nature of goods Percentage
(1) (2) (3)
(i) Alcoholic liquor for human consumption (other Fifteen
per cent than Indian-made foreign
liquor)
(ii) Timber obtained
under a forest lease Fifteen
per cent
(iii) Timber obtained by any
mode other than under a Five
per cent forest lease
(iv) Any other forest
produce not being timber Fifteen
per cent:
Provided that where the Assessing Officer, on an application made by the buyer, gives a certificate in the prescribed form that to the best of his belief any of the goods referred to in the aforesaid Table are to be utilised for the purposes of manufacturing, processing or producing articles or things and not for trading purposes, the provisions of this sub-section shall not apply so long as the certificate is in force.”
[R385]See rule 37C and Form No. 27C.
[R386]For the meaning of the expression “such amount”
[R387]Substituted by the Taxation Laws (Amdt.)
Act, 2003, w.r.e.f. 8-9-2003. Prior to its
substitution it was amended by the Finance Act, 2003, w.e.f.
1-6-2003. and Finance
(No. 2) Act, 1996, w.e.f. 1-10-1996 read as under :
“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 :” |
[R388]Substituted by the Taxation Laws (Amdt.)
Act, 2003, w.r.e.f. 8-9-2003. Prior to its
substitution it 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.”
[R389]Inserted
by the Taxation Laws (Amendment) Act, 2003, w.r.e.f. 8-9-2003.
[R390]Substituted for “seven days” by the Taxation Laws (Amendment) Act, 2003, w.r.e.f. 8-9-2003.
[R391]Substituted for “ten days from the date of debit” by the Taxation Laws (Amendment) Act, 2003, w.r.e.f. 8-9-2003.
[R392]See rule 37D and Form No. 27D
[R393]Inserted
by the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989.
[R394]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
[R395]See rule 37E and Form Nos. 27EA to 27ED.
[R396]Sub-sections (5A)and (5C) inserted by the Finance Act, 1999, w.e.f. 1-6-1999
[R397]See rule 37EA and Form No. 27B.
[R398]Substituted for “one and one fourth” by the Taxation Laws (Amdt.) Act, 2003, w.r.e.f. 8-9-2003.Earlier it was substituted for “two” by the Finance Act, 2001, w.e.f. 1-6-2001
[R399]Sub-sections (9), (10) and (11) inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R400]See rules 37G and 37H and Form Nos. 27F & 27G.
[R401]Inserted
by the Finance Act, 1992, w.e.f. 1-4-1992.
[R402]Substituted by the Taxation Laws
(Amendment) Act, 2003, w.r.e.f. 8-9-2003 Prior
to its substitution sub-clauses (i) and (ii)
was substituted Finance
Act, 2003, w.e.f. 1-6-2003 it 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;”
[R403]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.’
[R404]Inserted by the Finance Act, 2002, w.e.f. 1-6-2002.
[R405]Rule 114AA prescribes time limit of one month from the end of the month in which tax was collected.
[R406]See rule 114AA and Form No. 49B.
[R407]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.
[R408]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.
[R409]Substituted for “one thousand five hundred” by the Finance (No. 2) Act, 1996, w.e.f. 1-10-1996
[R410]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.
[R411]Inserted
by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from
1-6-1988.
[R412]Inserted by the Finance Act, 1974, w.e.f. 1-4-1974.
[R413]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
[R414]Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R415]Substituted by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1988 for the following clause (b)
as amended by the Finance Act, 1978, w.e.f. 1-6-1978:
“(b) in cases where an estimate (including a revised estimate) is sent by the assessee under section 209A or section 212, the net agricultural income, as estimated by him, of the period which would be the previous year for the immediately following assessment year.”
[R416]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R417]Inserted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R418]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.
[R419]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.
[R420]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
[R421]See also Circular No. 709, dated 19-7-1995. For details, see Income-tax Act
[R422]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
[R423]See rule 39 and Form No. 28A for form of estimate of advance tax
[R424]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.
[R425]See Circular No. 676, dated 14-1-1994, Circular No. 697, dated 16-12-1994 and Circular No. 709, dated 19-7-1995
[R426]Substituted by the Finance Act, 1994, w.e.f.
1-4-1994. Prior to its substitution, sub-section (1), as 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, read as under :
“(1)
Advance tax on the current income, calculated in the manner laid down in
section 209 shall be payable by all the assessees who are liable to pay the
same in three instalments during each financial year,
the due date of, and the amount payable in, each such instalment
being as specified in the following Table :
Table
Due date of instalment Amount payable
On or before the 15th
September Not less than
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.”
[R427]Prior to its omission, section 213 stood as under :
“213. Commission receipts.—Where
part of the income subject to advance tax consists of any income of the nature
of commission which is receivable periodically and is not received or adjusted
by the payer in the assessee’s account before any of
the instalments of advance tax become due, he may
defer payment of advance tax on that part of his income to the date on which
such income would be normally received or adjusted, and, if he does so, he
shall communicate to the Income-tax Officer the date to which such payment is
deferred :
Provided that, if the advance tax of which the payment is deferred
is not paid within fifteen days of the date on which such income or part
thereof is received or adjusted by the payer in the assessee’s
account, the advance tax shall payable with fifteen per cent simple interest
per annum from the date of such receipt or adjustment to the date of payment of
the advance tax.”
Earlier, it was amended by the Finance Act, 1965, w.e.f. 1-4-1965, the Taxation Laws (Amendment) Act, 1967, w.e.f. 1-10-1967, the Finance Act, 1969, w.e.f. 1-4-1969, the Finance Act, 1972, w.e.f. 1-4-1972 and the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
[R428]See rule 119A.
[R429]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
[R430]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
[R431]Substituted for “tax determined on regular assessment” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985.
[R432]Inserted by the Finance Act, 1968, w.e.f. 1-4-1968.
[R433]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
[R434]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R435]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R436]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R437]Inserted
by the Taxation Laws (Amendment) Act, 1984, w.e.f.
1-4-1985.
[R438]See also Letter [F.No. 400/40/73-ITCC], dated 19-10-1973 and Circular No. 492, dated 21-7-1987.
[R439]Substituted
by the Finance Act, 1969, w.e.f. 1-4-1970.
[R440]See rules 40 and 119A
[R441]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.
[R442]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.
[R443]Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-9-1980
[R444]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.
[R445]Substituted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985.
[R446]Inserted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1989.
[R447]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R448]See rule 40
[R449]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R450]Inserted by the Finance Act, 1969, w.e.f. 1-4-1970.
[R451]Inserted
by the Finance Act, 1972, w.e.f. 1-4-1972.
[R452]Inserted
by the Finance Act, 1973, w.e.f. 1-4-1973.
[R453]Substituted for “and section 195” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R454]Inserted
by the Taxation Laws (Amendment) Act, 1984, w.e.f.
1-4-1985.
[R455]See rule 119A.
[R456]See also Letter [F.No. 400/58/78-ITCC], dated 29-2-1980.
[R457]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R458]Substituted by the Finance Act, 1969, w.e.f. 1-4-1970.
[R459]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.
[R460]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
[R461]See rules 40 and 119A
[R462]Substituted
by the Finance Act, 1969, w.e.f. 1-4-1970.
[R463]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.
[R464]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R465]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.
[R466]Substituted for “sub-section” by the Finance Act, 1978, w.e.f. 1-6-1978.
[R467]Inserted by the Finance Act, 1969, w.e.f. 1-4-1970.
[R468]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R469]Inserted
by the Finance Act, 1978, w.e.f. 1-6-1978.
[R470]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.
[R471]Substituted
for “sub-section” by the Finance Act, 1978, w.e.f.
1-6-1978.
[R472]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.
[R473]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.
[R474]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
[R475]Substituted for “thirty-five” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R476]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R477]Substituted for “thirty-five” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R478]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
[R479]Substituted for "thirty-five" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R480]See
rule 119A.
[R481]Substituted by the Taxation Laws (Amendment) Act, 2003, w.r.e.f. 8-9-2003. Earlier it was substituted by the Finance Act, 2001, w.e.f. 1-6-2001 and by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R482]Inserted
by the Finance Act, 1963, w.r.e.f. 1-4-1962.
[R483]Inserted by the Taxation Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R484]Inserted by the Taxation Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R485]Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
[R486]Substituted for “the Board may” by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1987.
[R487]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R488]Inserted
by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.r.e.f. 1-10-1984.
[R489]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.
[R490]Inserted, by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.r.e.f. 1-10-1984.
[R491]Inserted, by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.r.e.f. 1-10-1984.
[R492]For the meaning of the expression “without prejudice to the provisions contained in sub-section (2)
[R493]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R494]Inserted by the Finance Act, 2000, w.e.f. 1-6-2000.
[R495]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R496]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R497]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.
[R498]Substituted by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[R499]For the meaning of the terms/expressions “arrears” and “may direct”, see Direct Taxes Manual, Vol. 3
[R500]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R501]For the meaning of the terms/expressions “arrears” and “may direct”, see Direct Taxes Manual, Vol. 3.
[R503]Substituted by the Taxation Laws (Amendment &
Miscellaneous Provisions) Act, 1986, w.e.f.
10-9-1986. Prior to its substitution, the second proviso stood as under :
“Provided further that where the Income-tax Officer is satisfied that the default was for good and sufficient reasons, no penalty shall be levied under this section.”
[R504]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R506]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f.
1-10-1975.
[R507]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—”
[R508]See rule 117B and Form No. 57 for form of statement drawn by TRO
[R509]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975
[R510]Substituted by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989. Prior to its substitution,
sub-section (2), as amended by the Direct Tax Laws (Amendment) Act, 1989, with
retrospective effect from 1-4-1988, stood as under :
“(2) The Assessing Officer may issue a certificate under sub-section (1), notwithstanding that proceedings for recovery of the arrears by any other mode have been taken.”
[R511]Substituted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1989. Prior to its
substitution, section 223, as amended by the Direct Tax Laws (Amendment) Act,
1989, with retrospective effect from 1-4-1988 and the Taxation Laws
(Amendment) Act, 1975, w.e.f. 1-10-1975, stood as
under:
“Tax Recovery Officer to whom
certificate is to be issued.—(1) The Assessing Officer may forward that certificate
referred to in section 222 to—
(a) the
Tax Recovery Officer within whose jurisdiction the assessee carries on his
business or profession or within whose jurisdiction the principal place of his
business or profession is situate; or
(b) the Tax Recovery Officer within whose jurisdiction the
assessee resides or any movable or immovable property of the assessee is
situate.
(2) Where an assessee has property
within the jurisdiction of more than one Tax Recovery Officer and the Tax
Recovery Officer to whom a certificate is sent by an Assessing Officer—
(a) is not able to recover the entire amount by
the sale of the property, movable or immovable, within his jurisdiction, or
(b) is of the opinion that, for the purpose of
expediting or securing the recovery of the whole or any part of the amount
under this Chapter, it is necessary so to do,
he may send the certificate or, where only a part of the amount is to be recovered, a copy of the certificate certified in the prescribed manner and specifying the amount to be recovered to a Tax Recovery Officer within whose jurisdiction the assessee resides or has property, and thereupon that Tax Recovery Officer shall also proceed to recover the amount under this Chapter as if the certificate or the copy thereof had been the certificate sent to him by the Assessing Officer.”
[R512]See rule 117B and Form No. 57.
[R513]Substituted for the following section 224, as
amended by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect
from 1-4-1988, by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989:
“Validity of certificate, and amendment
thereof.—(1)
When the Assessing Officer sends a certificate to a Tax Recovery Officer under
section 222, it shall not be open to the assessee to dispute before the Tax
Recovery Officer the correctness of the assessment, and no objection to the
certificate on any ground shall be entertained by the Tax Recovery Officer.
(2) Notwithstanding the issue of a
certificate to a Tax Recovery Officer, the Assessing Officer shall have power
to withdraw or correct any clerical or arithmetical mistake in the certificate
by sending an intimation to the Tax Recovery Officer.
(3) The Assessing Officer shall intimate to the Tax Recovery Officer any orders withdrawing or cancelling a certificate or any correction made by him under sub-section (2) of this section or any amendment made under sub-section (4) of section 225.”
[R514]Substituted for the following section 225, as
amended by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect
from 1-4-1988, by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989:
“Stay of proceedings under certificate
and amendment or withdrawal thereof.—(1) Notwithstanding that a certificate has been
issued to the Tax Recovery Officer for the recovery of any tax, the Assessing
Officer may grant time for the payment of the tax, and thereupon the Tax
Recovery Officer shall stay the proceedings until the expiry of the time so
granted.
(2) Where a certificate for the recovery
of tax has been issued, the Assessing Officer shall keep the Tax Recovery
Officer informed of any tax paid or time granted for payment, subsequent to
the issue of such certificate.
(3) Where the order giving rise to a
demand of tax for which a certificate for recovery has been issued has been
modified in appeal or other proceeding under this Act, and, as a consequence
thereof, the demand is reduced but the order is the subject-matter of further
proceeding under this Act, the Assessing Officer shall stay the recovery of
such part of the amount of the certificate as pertains to the said reduction
for the period for which the appeal or other proceeding remains pending.
(4) Where a certificate for the recovery of tax has been issued and subsequently the amount of the outstanding demand is reduced as a result of an appeal or other proceeding under this Act, the Assessing Officer shall, when the order which was the subject-matter of such appeal or other proceeding has become final and conclusive, amend the certificate or withdraw it, as the case may be.”
[R515]For the meaning of the term “reduced”
[R516]Substituted for the following 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 :
“(1) Notwithstanding the issue of a certificate to the Tax Recovery Officer under section 222, the Assessing Officer may recover the tax by any one or more of the modes provided in this section.”
[R517]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R518]Inserted
by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f.
1-4-1989.
[R519]For text of section 60 of the Code of Civil Procedure,1908, see Appendix One.
[R520]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R521]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R522]For the meaning of the expression “may become due”
[R523]For the meaning of the expression “or may subsequently hold money”
[R524]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R525]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R526]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R527]Inserted
by the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989.
[R528]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R529]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R530]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R531]Inserted
by the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989.
[R532]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R533]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R534]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R535]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R536]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R537]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R538]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R539]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R540]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R541]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R542]Substituted by the Finance Act, 1965, w.e.f. 1-4-1965.
[R543]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R544]Inserted
by the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989.
[R545]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R546]Prior to its omission, section 228, as amended by the
Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988,
stood as under :
‘(1) The Assessing Officer may forward a
certificate under section 222 to a Collector in Pakistan through the Central
Board of Revenue of Pakistan, if the assessee has property in the district of that
Collector, and for the purposes of that section, the expression “Tax Recovery
Officer” shall include a Collector in Pakistan.
(2)
Where a Collector in India receives through the Board a certificate under the
signature of an Assessing Officer in Pakistan, the Collector shall proceed to
recover the amount specified therein in the manner in which he would proceed to
recover the amount specified in a certificate received from an Assessing
Officer in India, and shall remit any sum so recovered by him to the Assessing
Officer in Pakistan, after deducting his expenses in connection with the
recovery proceedings.
(3) The provisions of this section shall remain in force only so long as there are in force similar provisions in the law of Pakistan for the recovery of tax by a Collector in Pakistan on receipt of a certificate from an Assessing Officer in India.’
[R547]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R548]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.
[R549]Substituted for the following, 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 :
“(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.”
[R550]See also Circular No. 31 (LIXVI-10), dated 15-11-1960, Letter [F. No. 458/3/72-FTD], dated 15-5-1973 and Circular No. 546, dated 4-10-1989.
[R551]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 India; or
(b) who is domiciled in India at the time of his departure, but—
(i) intends to leave
India as an emigrant; or
(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.’
[R552]For specified exceptions prescribed under rule old section 230
[R553]For notification appointing competent authority prescribed under rule old section 230
[R554]Word “further” should occur after the words “provided”.
[R555]Inserted by the Taxation Laws (Amendment) Act, 2003, w.r.e.f. 1-6-2003.
[R556]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R557]See rules 42, 43 and 44 and Form Nos. 31, 32, 33 and 34 for form of application for tax clearance certificate, form of authorisation from Assessing Officer [to be accompanied with application where applicant is a person domiciled in India or is a person who has been assessed], form of tax clearance certificate and form of exemption certificate.
[R558]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.”
*See also Circular No. 191, dated
4-3-1976 and Letter [F. No. 358/4/91-IT(B)], dated
10-12-1992. †See
rules 44A and 44B and Form No. 34A for application for tax clearance
certificate for registration of document (in duplicate).
††For
complete list of institutions/associations/bodies
[R559]Prior to its omission, section 231 was amended by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
[R560]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R561]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
[R562]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R563]See also Notification No. F. No. 400/234/95-IT(B), dated 23-5-1996. See also Press Release authorising Chief Commissioners/Director General (Investigation) to waive penal interest in certain cases and Circular No. 783, dated 18-11-1999.
[R564]For the meaning of the term “shall”
[R565]Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.r.e.f. 8-9-2003. Earlier it was substituted by the Finance Act, 2001, w.e.f. 1-6-2001 and Finance Act, 1999, w.e.f. 1-6-1999
[R566]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.
[R567]Substituted
by the Direct Tax Laws (Amendment) Act, 1989,w.e.f.
1-4-1989.
[R568]Inserted
by the Finance Act, 2003, w.e.f. 1-6-2003.
[R569]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.’
[R570]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003
[R571]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R572]Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.r.e.f. 8-9-2003. Earlier it was substituted by the Finance Act, 2001, w.e.f. 1-6-2001 and Finance Act, 1999, w.e.f. 1-6-1999.
[R573]Inserted
by the Finance Act, 2003, w.e.f. 1-6-2003.
[R574]Inserted
by the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989.
[R575]Omitted
by the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989.
[R576]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R577]For the meaning of the term “shall”
[R578]Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. Earlier it was substituted by the Finance Act, 2001, w.e.f. 1-6-2001 and Finance Act, 1999, w.e.f. 1-6-1999.
[R579]Substituted
for “to the date of the regular assessment” by the Direct Tax Laws (Amendment)
Act, 1989, w.e.f. 1-4-1989.
[R580]Substituted for “or regular assessment, on an amount” by the Finance Act, 1995, w.r.e.f. 1-4-1989.
[R581]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.’
[R582]Inserted
by the Finance Act, 2003, w.e.f. 1-6-2003.
[R583]Substituted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R584]Inserted
by the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989.
[R585]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003.
[R586]Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.r.e.f. 8-9-2003. Earlier it was substituted by the Finance Act, 2001, w.e.f. 1-6-2001 and Finance Act, 1999, w.e.f. 1-6-1999.
[R587]Substituted for “the date of the regular assessment” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R588]Substituted for “or regular assessment referred to in sub-section (1)” by the Finance Act, 1995, w.r.e.f. 1-4-1989
[R589]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003.
[R590]Substituted
for “the date of the regular assessment” by the Direct Tax Laws (Amendment)
Act, 1989, w.e.f. 1-4-1989.
[R591]Omitted
by the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989.
[R592]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R593]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.”
[R594]For the meaning of the term “shall
[R595]Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.r.e.f. 8-9-2003. Earlier it was substituted by the Finance Act, 2001, w.e.f. 1-6-2001
[R596]Substituted
for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.r.e.f. 8-9-2003. Earlier it was substituted by the Finance Act, 2001, w.e.f. 1-6-2001.
[R597]Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.r.e.f. 8-9-2003. Earlier it was substituted by the Finance Act, 2001, w.e.f. 1-6-2001.
[R598]Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.r.e.f. 8-9-2003. Earlier it was substituted by the Finance Act, 2001, w.e.f. 1-6-2001.
[R599]Inserted
by the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989.
[R600]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.
[R601]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.”
[R602]Third proviso inserted by the Taxation Laws (Amendment) Act, 2001, w.r.e.f. 3-2-2001.
[R603]Inserted by the Finance Act, 1992, w.r.e.f. 1-4-1989
[R604]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.
[R605]Inserted
by the Finance Act, 2003, w.e.f. 1-6-2003.
[R606]Substituted
for “two-third percent” by the Taxation Laws (Amdt.)
Act, 2003, w.r.e.f. 8-9-2003.