Section 197 of Income Tax Act "Certificate for deduction at lower rate"
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, 194LBB, 194LBC 80[, 194M] 81[, 194-O] 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) [***]
197A. (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 section 192A or
section 193 or section 194A or section 194D or section 194DA
or section 194-I 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 section 192A or section 193 or
section 194A or section 194D or section 194DA or section
194-I 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 section 192A or
section 193 or section 194 or section 194A or section 194D
or section 194DA or section 194EE or section 194-I 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 section 192A or section 193 or
section 194 or section 194A or section 194D or section 194DA
or section 194EE or section 194-I 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.
(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.
82[(1F) Notwithstanding anything contained in this Chapter,
no deduction of tax shall be made, or deduction of tax shall
be made at such lower rate, from such payment to such person
or class of persons, including 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 Principal Chief Commissioner or Chief Commissioner or
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.