Section 206A of Income Tax Act "Furnishing of quarterly return in respect of payment of interest to residents without deduction of tax"
206A. (1) Any banking company or co-operative society or public company referred to in the proviso to clause (i) of sub-section (3) of section 194A responsible for paying to a resident any income not exceeding forty thousand rupees, where the payer is a banking company or a co-operative society, and five thousand rupees in any other case by way of interest (other than interest on securities), shall prepare such statement in such form, containing such particulars, for such period, verified in such manner and within such time, as may be prescribed, and deliver or cause to be delivered the said statement to the prescribed income-tax authority or to the person authorised by such authority.
(2) The Board may require any person, other than a person
mentioned in sub-section (1), responsible for paying to a
resident any income liable for deduction of tax at source
under Chapter XVII, to prepare such statement in such form,
containing such particulars, for such period, verified in
such manner and within such time, as may be prescribed, and
deliver or cause to be delivered the said statement to the
income-tax authority or the authorised person referred to in
sub-section (1).
(3) The person responsible for paying to a resident any
income referred to in sub-section (1) or sub-section (2) may
also deliver to the income-tax authority referred to in
sub-section (1), a correction statement for rectification of
any mistake or to add, delete or update the information
furnished in the statement delivered under the said
sub-sections in such form and verified in such manner, as
may be prescribed.]
206AA. (1) Notwithstanding anything contained in any
other provisions of this Act, any person entitled to receive
any sum or income or amount, on which tax is deductible
under Chapter XVIIB (hereafter referred to as deductee)
shall furnish his Permanent Account Number to the person
responsible for deducting such tax (hereafter referred to as
deductor), failing which tax shall be deducted at the higher
of the following rates, namely:-
(i) at the rate specified in the relevant provision of this
Act; or
(ii) at the rate or rates in force; or
(iii) at the rate of twenty per cent:
89[Provided that where the tax is required to be deducted
under section 194-O, the provisions of clause (iii) shall
apply as if for the words "twenty per cent", the words "five
per cent" had been substituted.]
(2) No declaration under sub-section (1) or sub-section (1A)
or sub-section (1C) of section 197A shall be valid unless
the person furnishes his Permanent Account Number in such
declaration.
(3) In case any declaration becomes invalid under
sub-section (2), the deductor shall deduct the tax at source
in accordance with the provisions of sub-section (1).
(4) No certificate under section 197 shall be granted unless
the application made under that section contains the
Permanent Account Number of the applicant.
(5) The deductee shall furnish his Permanent Account Number
to the deductor and both shall indicate the same in all the
correspondence, bills, vouchers and other documents which
are sent to each other.
(6) Where the Permanent Account Number provided to the
deductor is invalid or does not belong to the deductee, it
shall be deemed that the deductee has not furnished his
Permanent Account Number to the deductor and the provisions
of sub-section (1) shall apply accordingly.
(7) The provisions of this section shall not apply to a
non-resident, not being a company, or to a foreign company,
in respect of-
(i) payment of interest on long-term bonds as referred to in
section 194LC; and
(ii) any other payment subject to such conditions as may be
prescribed.