India - Income Tax Act 2010 - Saarc

S. 194A I.T. ACT, 1961 1.744Provided further that the provisions of this section shall not apply to such incomecredited or paid to—(a) the Life Insurance Corporation of India established under the LifeInsurance Corporation Act, 1956 (31 of 1956), in respect of any sharesowned by it or in which it has full beneficial interest;(b) the General Insurance Corporation of India (hereafter in this provisoreferred to as the Corporation) or to any of the four companies(hereafter in this proviso referred to as such company), formed byvirtue of the schemes framed under sub-section (1) of section 16 ofthe General Insurance Business (Nationalisation) Act, 1972 (57 of1972), in respect of any shares owned by the Corporation or suchcompany or in which the Corporation or such company has fullbeneficial interest;(c) any other insurer in respect of any shares owned by it or in which ithas full beneficial interest :]2[Provided also that no such deduction shall be made in respect of any dividendsreferred to in section 115-O.]3[Interest other than “Interest on securities”.4194A. 5(1) Any person 6 , not being an individual or a Hindu undivided family,who is responsible for paying 6 to a resident any income by way of interestother than income 7 [by way of interest on securities], shall, at the time of creditof such income to the account of the payee 8 or at the time of payment thereof incash 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 :2. Inserted by the Finance Act, 2003, w.r.e.f. 1-4-2003.3. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.4. See also Circular No. 288, dated 22-12-1980, Circular No. 256, dated 29-5-1979, CircularNo. 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)], dated23-9-1968, Letter [F. No. 12/113/68-IT(A-II)], dated 28-10-1968, Letter [F. No. 275/109/92-IT(B)], dated 21-9-1994, Circular No. 526, dated 5-12-1988, Circular No. 626, dated12-2-1992, Circular No. 643, dated 23-1-1993, Circular No. 647, dated 22-3-1993, CircularNo. 715, dated 8-8-1995, Circular No. 716, dated 9-8-1995, Circular No. 9/2002, dated11-9-2002, Circular No. 3/2002, dated 28-6-2002, Circular No. 11/2002, dated 22-11-2002,Circular No. 12/2002, dated 22-11-2002, Circular No. 2/2003, dated 11-3-2003, CircularNo. 3/2003, dated 11-3-2003 and Circular No. 3/2010, dated 2-3-2010. For details, seeTaxmann’s Master Guide to Income-tax Act.5. See rules 28(1), 28AA, 28AB, 29C, 30, 31, 31A, 31AB, 31AC, 31ACA, 37 and 37BA and FormNos. 13, 15G, 15H, 16A, 26AS, 26Q, 26QA and 26QAA.6. For the meaning of the expressions “any person” and “responsible for paying”, seeTaxmann’s Direct Taxes Manual, Vol. 3.7. Substituted for ‘chargeable under the head “Interest on securities” ’ by the Finance Act,1988, w.e.f. 1-4-1989.8. For the meaning of the expression “at the time of credit . . . account of the payee”, seeTaxmann’s Direct Taxes Manual, Vol. 3.