Other sums.
97195. 98[(1) 99Any person responsible for paying to a non-resident, not being a
company, or to a foreign company, any interest 1[***] or any other sum chargeable under the
provisions of this Act (not being income chargeable under the head “Salaries” 2[***]) shall, at the time of credit of such
income to the account of the payee or at the time of payment thereof in cash or
by the issue of a cheque or draft or by any other mode, whichever is earlier,
deduct income-tax thereon at the rates in force :
3[Provided that in the case of interest
payable by the Government or a public sector bank within the meaning of clause
(23D) of section 10 or a public financial
institution within the meaning of that clause, deduction of tax shall be made
only at the time of payment thereof in cash or by the issue of a cheque or
draft or by any other mode :]
4[Provided further that no such deduction shall be made in respect
of any dividends referred to in section 115-O.]
Explanation.—For the purposes of this section, where any interest or other sum as
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 the
person liable to pay such income, such crediting shall be deemed to be credit
of such income to the account of the payee and the provisions of this section
shall apply accordingly.]
(2) Where the person responsible for paying
any such sum chargeable under this Act (other than 5[***] 6[***] 7[***] 8[***] salary) to a non-resident considers that the whole 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 general or special order], the appropriate proportion of such sum so
chargeable, and upon such determination, tax shall be deducted under
sub-section (1) only on that proportion of the sum which is so chargeable.
11[***]
12[(3) Subject to rules13 made under sub-section (5), any person
entitled to receive any interest or other sum on which income-tax has to be
deducted under sub-section (1) may make an application in the prescribed form
to the 14[Assessing] Officer for the grant of a certificate authorising him to
receive such interest or other sum without deduction of tax under that
sub-section, and where any such certificate is granted, every person
responsible for paying such interest or other sum to the person to whom such
certificate is granted shall, so long as the certificate is in force, make
payment of such interest or other sum without deducting tax thereon under
sub-section (1).
(4) A certificate granted under sub-section
(3) shall remain in force till the expiry of the period specified therein or,
if it is cancelled by the 14[Assessing] Officer before the expiry of such period, till such
cancellation.
(5) 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 (3) and the conditions subject to which such
certificate may be granted and providing for all other matters connected
therewith.]
15[(6) The person referred to in sub-section (1) shall furnish the
information relating to payment of any sum in such form and manner as may be
prescribed16 by the Board.]