India - Income Tax Act 2010 - Saarc

1.763 CH. XVII - COLLECTION AND RECOVERY - DEDUCTION AT SOURCE S. 195chargeable under the provisions of this Act (not being income chargeable underthe head “Salaries” 2 [***]) shall, at the time of credit of such income to the accountof the payee or at the time of payment thereof in cash or by the issue of a chequeor draft or by any other mode, whichever is earlier, deduct income-tax thereonat the rates in force :3[Provided that in the case of interest payable by the Government or a publicsector bank within the meaning of clause (23D) of section 10 or a public financialinstitution within the meaning of that clause, deduction of tax shall be made onlyat the time of payment thereof in cash or by the issue of a cheque or draft or byany other mode :]4[Provided further that no such deduction shall be made in respect of anydividends referred to in section 115-O.]Explanation.—For the purposes of this section, where any interest or other sumas 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 theperson liable to pay such income, such crediting shall be deemed to be credit ofsuch income to the account of the payee and the provisions of this section shallapply accordingly.](2) Where the person responsible for paying any such sum chargeable under thisAct (other than 5 [***] 6 [***] 7 [***] 8 [***] salary) to a non-resident considers that thewhole of such sum would not be income chargeable in the case of the recipient,he may make an application to the 9 [Assessing] Officer to determine, 10 [by generalor special order], the appropriate proportion of such sum so chargeable, andupon such determination, tax shall be deducted under sub-section (1) only onthat proportion of the sum which is so chargeable.11[***]12[(3) Subject to rules 13 made under sub-section (5), any person entitled to receiveany interest or other sum on which income-tax has to be deducted under sub-2. Words “or dividends” omitted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.3. Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.r.e.f. 1-6-1987.4. Inserted by the Finance Act, 2003, w.e.f. 1-4-2003. Earlier the second proviso was insertedby the Finance Act, 1997, w.e.f. 1-6-1997 and later on omitted by the Finance Act, 2002,w.e.f. 1-6-2002.5. Words “interest including” omitted by the Finance Act, 1976, w.e.f. 1-6-1976.6. Words “interest on securities” omitted by the Finance Act, 2003, w.e.f. 1-6-2003.7. Word “, dividend” omitted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.8. Word “and” omitted by the Finance Act, 2003, w.e.f. 1-6-2003.9. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.10. Substituted for “in the prescribed manner” by the Finance Act, 1988, w.r.e.f. 1-3-1988. Theexpression “in the prescribed manner” was earlier substituted for “by general or specialorder” by the Finance Act, 1987, w.e.f. 1-6-1987.11. Omitted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991. Prior to omission, proviso wasinserted by the Finance Act, 1987, w.e.f. 1-6-198712. Inserted by the Finance Act, 1970, w.e.f. 1-4-1970.13. See rule 29B and Form Nos. 15C and 15D.