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Rakshak Chemicals (P) Ltd., Vapi vs Ito, Tds, Valsad on 8 September, 2005
Rakshak Chemicals (P) Ltd., Vapi vs Ito, Tds, Valsad on 8 September, 2005
Rakshak Chemicals Pvt. Ltd. And ... vs The Income-Tax Officer ... on 8 September, 2003
Karumuthu Ramaswamy Finance (P.) ... vs First Income-Tax Officer on 12 October, 1984
First Income-Tax Officer vs Ashoka Cotton Co. Ltd. on 31 October, 1986

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[Complete Act]
Central Government Act
Section 194A in The Income- Tax Act, 1995
194A. 3[ Interest other than" Interest on securities" 4
(1) 5[ Any person, not being an individual or a Hindu undivided family, who. is responsible for paying to a resident any income by way of interest
1. Substituted for" one thousand rupees" by the Finance Act, 1987, w. e. f. 1- 6- 1987.
2. Prior to the omission, the second proviso, as originally enacted and amended by the Finance Act, 1965, w. e. f. 1- 4- 1965; Finance (No. 2) Act, 1977, w. e. f. 1- 10- 1977 and the Direct Tax Laws (Amendment) Act, 1987, w. e. f. 1- 4- 1988, read as under:" Provided further that where in the case of any shareholder, not being a company, the Assessing Officer gives a certificate in writing in the prescribed manner that to the best of his belief the total income of the shareholder will be less than the minimum liable to income- tax, the person responsible for paying any dividend to the shareholder shall, so long as the certificate is in force pay the dividend without any deduction."
3. Inserted by the Finance (No. 2) Act, 1967, w. e. f. 1- 4- 1967.
other than income 1[ by way of interest on securities], 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 issue of a cheque or draft or by any other mode, whichever is earlier, deduct income- tax thereon at the rates in force: 2[ Omitted by the Finance Act, 1992 , w. e. f. 1- 6- 1992 .] 3[ Explanation.- For the purposes of this section where any income by way of interest 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.] 4[ Omitted by the Finance Act, 1992 , w. e. f. 1- 6- 1992 .]
(3) The provisions of sub- section (1) shall not apply-
(i) 5[ where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the person referred to in sub- section (1) to the account of, or to, the payee, does not exceed 6[ two thousand five hundred rupees]:
1. Substituted for' chargeable under the head" Interest on securities", by the Finance Act, 1988, w. e. f. 1- 4- 1989.
2. Prior to the omission, the proviso read as under:" Provided that no such deduction shall be made in a case where the person (not being a company or a registered firm) entitled to receive such income furnishes to the person responsible for making the payment- (a) an affidavit, or (b) a statement in writing, declaring that his estimated total income assessable for the assessment year next following the financial year in which the income is credited or paid will be less than the minimum liable to income- tax."
3. Inserted by the Finance Act, 1987, w. e. f. 1- 6- 1987.
4. Prior to the omission, sub- section (2), as amended by the Finance Act, 1968, w. e. f. 1- 4- 1968, read as under-." (2) The statement in writing referred to in subsection (1) shall also contain such other particulars as may be prescribed. be verified in the prescribed manner, be signed in the presence of- (a) a Member of Parliament or a State Legislature; or (b) a Member of a District Council or a Metropolitan Council, a Municipal Corporation or Municipal Committee; or (c) a Gazetted Officer of the Central or a State Government; or (d) an officer of any banking company (including a co- operative bank) of the rank of sub- agent, agent or manager, and bear an attestation by such member or officer to the effect that the person who has signed the statement is known to him."
5. Substituted by the Finance Act, 1975, w. e. f. 1- 4- 1975. Section 20 (2) of the Amendment Act made a special provision in regard to the amendment as under:" (2) Notwithstanding the substitution of clause (i) of sub- section (3) of section 194A of the Income- tax Act by sub- section (1) of this section, nothing in section 201 or section 276B of that Act shall apply to, or in relation to, any failure to deduct incometax under sub- section (1) of the said section 194A on any income by way of interest other than income chargeable under the head" Interest on securities" credited or paid on or after the 1st day of April, 1975, but before the 1st day of June, 1975, where the income so credited or paid at any one time does not exceed four hundred rupees."
6. Substituted for" one thousand rupees" by the Finance Act, 1987, w. e. f. 1- 6- 1987.
1[ Provided that in respect of' the income credited or paid in respect of time deposits with a banking company to which the Banking Regulation Act, 1949 (10 of 1949 ), applies (including any bank or banking institution referred to in section 51 of that Act) or with a co- operative society engaged in carrying on the business of banking, the provisions of this clause shall have effect as if for the words" two thousand five hundred rupees", the words" ten thousand rupees" had been substituted and the aforesaid amount shall be computed with reference to the income credited or paid by a branch of the banking company or the co- operative society, as the case may be;]
(ii) to such income credited or paid before the 1st day of October, 1967 ;
(iii) to such income credited or paid to-
(a) any banking company to which the Banking Regulation Act, 1949 (10 of 1949 ), applies, or any co- operative society engaged in carrying on the business of banking (including a co- operative land mortgage bank), or
(b) any financial corporation established by or under a Central, State or Provincial Act, or
(c) the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956 ), or
(d) the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963 ), or
(e) any company or co- operative society carrying on the business of insurance, or
(f) 2[ such other institution, association or body 3[ or class of institutions, associations or bodies] which the Central Government may, for reasons to be recorded in writing, notify in this behalf in the Official Gazette;
(iv) 4[ to such income credited or paid by a firm to a partner of the firm;
(v) to such income credited or paid by a co- operative society 5[ to a member thereof or] to any other co- operative society;
(Vi) 6[ to such income credited or paid in respect of deposits under any scheme framed by the Central Government and notified' by it in this behalf in the Official Gazette;]
1. Inserted by the Finance Act, 1995, w. e. f. 1- 7- 199. 5
3. Inserted by the Finance Act, 1968, w. e. f. 1- 4- 1968.
4. Inserted by the Finance Act, 1968, w. e. f. 1- 4- 1968. It was omitted by the Direct Tax Laws (Amendment) Act, 1987, w. e. f. 1- 4- 1988 but was reintroduced by the Direct Tax Laws (Amendment) Act, 1989, with effect from the same date.
5. Inserted by the Finance (No. 2) Act, 1971, w. e. f. 1- 4- 1971
6. Inserted by the Finance Act, 1970, w. e. f. 1- 4- 1970.
(vii) 1[ to such income credited or paid in respect of deposits (other than time deposits made on or after the 1st day of July, 1995 ) with a banking company to which the Banking Regulation Act, 1949 (10 of 1949 ), applies (including any bank or banking institution referred to in section 51 of that Act);
(viia) to such income credited or paid in respect of,-
(a) deposits with a primary agricultural credit society or a primary credit society or a co- operative land mortgage bank or a co- operative land development bank;
(b) deposits (other than time deposits made on or after the 1st day of July, 1995 ) with a co- operative society, other than a co- operative society or bank referred to in sub- clause (a), engaged in carrying on the business of banking;]
(viii) 2[ to such income credited or paid by the Central Government under any provision of this Act or the Indian Income- tax Act, 1922 (11 of 1922 ), or the Estate Duty Act, 1953 (34 of 1953 ), or the Wealth- tax Act, 1957 (27 of 1957 ), or the Gift- tax Act, 1958 (18 of 1958 ), or the Super Profits Tax Act, 1963 (14 of 1963 ), or the Companies (Profits) Surtax Act, 1964 (7 of 1964 ) or the Interest Tax Act, 1974 (45 of 1974 ).]
1. Substituted by the Finance Act, 1995, w. e. f. 1- 7- 1995. Prior to the substitution, clause (vii), as substituted for clauses (vii) and (viia) by the Finance Act, 1992, w. e. f. 1- 6- 1992, read as under:" (vii) to such income credited or paid in respect of deposits with a banking company to which the Banking Regulation Act, 1949, (10 of 1949 ) applies (including any bank or banking institution referred to in section 51 of that Act), or with a co- operative society engaged in carrying on the business of banking (including a co- operative land mortgage bank or a co- operative land development bank);" Earlier, the above clause (vii) was substituted for clauses (vii) and (viia) by the Finance (No. 2) Act, 1991, w. e. f. 1- 10- 1991, which read as under:" (vii) to such income credited or paid in respect of deposits (other than time deposits) with a banking company to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act); (viia) to such income credited or paid in respect of,- (a) deposits with a primary agricultural credit society or a primary credit society or a co- operative land mortgage bank or a co- operative land development bank; (b) deposits (other than time deposits) with a co- operative society other than a co- operative society or bank referred to in sub- clause (a), engaged in carrying on the business of banking; Explanation.- For the purposes of clauses (vii) and (viia)," time deposits" means deposits (excluding recurring deposits) repayable on the expiry of fixed periods." Clause (vii), as inserted by the Finance Act, 1970, w. e. f. 1- 4- 1970, read as under:" (vii) to such income credited or paid in respect of deposits with a banking company to which the Banking Regulation Act, 1949 (10 of 1949 ), applies (including any bank or banking institution referred to in section 51 of that Act) or with a co- operative society engaged in carrying on the business of banking (including a co- operative land mortgage bank or a co- operative land development bank)."
2. Inserted by the Finance Act, 1975, w. e. f. 1- 4- 1975.
1[ Explanation.- For the purposes of clauses (i), (vii) and (viia)," time deposits" means deposits (excluding recurring deposits) repayable on the expiry of fixed periods.]
(4) 2[ The person responsible for making the payment referred to in sub- section (1) may, at the time of making any deduction, increase or reduce the amount to be deducted under this section for the purpose of adjusting any excess or deficiency arising out of any previous deduction or failure to deduct during the financial year.] 3[ Omitted by the Finance Act, 1992 , w. e. f 1- 6- 1992 .]