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What is Certificate for deduction at lower rate? What is the meaning of No deduction to be made in certain cases? Section 197 and 197A of Income Tax Act 1961

Certificate for deduction at lower rate and No deduction to be made in certain cases are defined under section 197 and 197A of Income Tax Act 1961. Provisions under these Sections are :

Section 197 of Income Tax Act "Certificate for deduction at lower rate"

Section 197 (1) Subject to rules made under sub-section (2A), where, in the case of any income of any person 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, 194, 194A, 194C, 194D, 194G, 194H, 194-I, 194J, 194K, 194LA and 195, the Assessing Officer is satisfied that the total income of the recipient justifies the deduction of income-tax at any lower rates or no deduction of income-tax, as the case may be, the 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 Assessing Officer, deduct income-tax at the rates specified in such certificate or deduct no tax, as the case may be.
(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.
(3) -

Section 197A of Income Tax Act "No deduction to be made in certain cases"

Section 197A. 1(1) Notwithstanding anything contained in section 194 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 section 194 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 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.
(1A) Notwithstanding anything contained in 2-6[section 192A or] section 193 or section 194A 2-6[or section 194DA] or section 194K, no deduction of tax shall be made under 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 2-6[section 192A or] section 193 or section 194A 2-6[or section 194DA] 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.
(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.
(1C) Notwithstanding anything contained in 2-6[section 192A or] section 193 or section 194 or section 194A 2-6[or section 194DA] 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 years or more at any time during the previous year, if such individual furnishes to the person responsible for paying any income of the nature referred to in 2-6[section 192A] or section 193 or section 194 or section 194A 2-6[or section 194DA] or section 194EE or section 194K, as the case may be, a declaration in writing in duplicate in the prescribed form7 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.
(1D) Notwithstanding anything contained in this section, no deduction of tax shall be made by the Offshore Banking Unit from the interest paid-
(a) on deposit made on or after the 1st day of April, 2005, by a non-resident or a person not ordinarily resident in India; or
(b) on borrowing, on or after the 1st day of April, 2005, from a non-resident or a person not ordinarily resident in India.
Explanation.-For the purposes of this sub-section "Offshore Banking Unit" shall have the same meaning as assigned to it in clause (u) of section 2 of the Special Economic Zones Act, 2005.
(1E) Notwithstanding anything contained in this Chapter, no deduction of tax shall be made from any payment to any person for, or on behalf of, the New Pension System Trust referred to in clause (44) of section 10.
(1F) Notwithstanding anything contained in this Chapter, no deduction of tax shall be made from such specified payment to such institution, association or body or class of institutions, associations or bodies as may be notified by the Central Government in the Official Gazette, in this behalf.
(2) The person responsible for paying any income of the nature referred to in sub-section (1) or sub-section (1A) or sub-section (1C) shall deliver or cause to be delivered to the 8[Principal Chief Commissioner or] Chief Commissioner or 8[Principal Commissioner or] Commissioner one copy of the declaration referred to in sub-section (1) or sub-section (1A) 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.

Income Tax Act 1961

What is Fees for professional or technical services? Section 194J of Income Tax Act 1961

What is Income in respect of units? Section 194 K of Income Tax Act 1961

What is Payment of compensation on acquisition of capital asset? What is Payment of compensation on acquisition of certain immovable property? Section 194 L and 194 LA of Income Tax Act 1961

What is Income by way of interest from infrastructure debt fund? What is the treatment of Certain income from units of a business trust? Section 194LB and 194 LBA of Income Tax Act 1961

What is Income in respect of units of investment fund? What is Income by way of interest from Indian company? Section 194LBB and 194 LC of Income Tax Act 1961

What is Income by way of interest on certain bonds and Government securities? What is Other sums? Section 194LD and 195 of Income Tax Act 1961

What is Income payable net of tax? What is Interest or dividend or other sums payable to Government, Reserve Bank or certain corporations? Section 195A and 196 of Income Tax Act 1961

What is Income in respect of units of non-residents? What is Income from units? Section 196A and 196B of Income Tax Act 1961

What is Income from foreign currency bonds or shares of Indian company Income of Foreign Institutional Investors from securities? Section 196C and 196D of Income Tax Act 1961

What is Certificate for deduction at lower rate? What is the meaning of No deduction to be made in certain cases? Section 197 and 197A of Income Tax Act 1961

Is Tax deducted is income received? Credit for tax deducted? Section 198 and 199 of Income Tax Act 1961

What is the Duty of person deducting tax? What is Processing of statements of tax deducted at source? Section 200 and 200A of Income Tax Act 1961

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