India - Income Tax Act 2010 - Saarc

1.745 CH. XVII - COLLECTION AND RECOVERY - DEDUCTION AT SOURCE S. 194A9[Provided that an individual or a Hindu undivided family, whose total sales,gross receipts or turnover from the business or profession carried on by himexceed the monetary limits specified under clause (a) or clause (b) of section44AB during the financial year immediately preceding the financial year inwhich such interest is credited or paid, shall be liable to deduct income-tax underthis section.]10[Explanation.—For the purposes of this section, where any income by way ofinterest as aforesaid is credited to any account, whether called “Interest payableaccount” or “Suspense account” or by any other name, in the books of accountof the person liable to pay such income, such crediting shall be deemed to becredit of such income to the account of the payee and the provisions of thissection shall apply accordingly.](2) 11 [Omitted by the Finance Act, 1992, w.e.f. 1-6-1992.](3) The provisions of sub-section (1) shall not apply—12[(i) where the amount of such income or, as the case may be, theaggregate of the amounts of such income credited or paid or likely tobe credited or paid during the financial year by the person referredto in sub-section (1) to the account of, or to, the payee, 13 [does notexceed—(a) ten thousand rupees, where the payer is a banking company towhich the Banking Regulation Act, 1949 (10 of 1949) applies(including any bank or banking institution, referred to in section51 of that Act);9. Inserted by the Finance Act, 2002, w.e.f. 1-6-2002. Earlier the proviso was omitted by theFinance 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 acompany or a registered firm) entitled to receive such income furnishes to the personresponsible for making the payment—(a) an affidavit, or(b) a statement in writing,declaring that his estimated total income assessable for the assessment year nextfollowing the financial year in which the income is credited or paid will be less than theminimum liable to income-tax.”10. Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.11. Prior to omission, sub-section (2) was amended by the Finance Act, 1968, w.e.f. 1-4-1968.12. Substituted by the Finance Act, 1975, w.e.f. 1-4-1975. Section 20(2) of the Finance Act, 1975makes an independent provision relating to substitution of clause (i). Sub-section (2) ofsection 20 read as under :‘(2) Notwithstanding the substitution of clause (i) of sub-section (3) of section 194A of theIncome-tax Act, by sub-section (1) of this section nothing in section 201 or section 276Bof that Act shall apply to, or in relation to, any failure to deduct income-tax under subsection(1) of the said section 194A on any income by way of interest other than incomechargeable under the head “Interest on securities” credited or paid on or after the 1st dayof April, 1975, but before the 1st day of June, 1975, where the income so credited or paidat any one time does not exceed four hundred rupees.’13. Substituted for “does not exceed five thousand rupees” by the Finance Act, 2007, w.e.f.1-6-2007. Earlier the italicised words were amended by the Finance Act, 1987, w.e.f. 1-6-1987 and Finance Act, 2000, w.e.f. 1-6-2000.