Section 197 Income Tax : Certificate for deduction at lower rate.
Certificate for deduction at lower rate.
197. 1(1) 2[Subject to rules made under sub-section (2A), 3[where, in the case of any income of any person 4[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, 5[194,]194A, 6[194C,]194D, 6[ 194G] 7[,194H] 8[,194-I] 9[, 194J] 10[,194K] 11[***] 12[, 194LA,] 13[194LBA] 14[,194LBB, 194LBC] 15[,194M] 16[,194-O] 17[,194Q] and 195, the Assessing Officer is satisfied]] that the total income 18[***] of the recipient justifies the deduction of income-tax 19[***] at any lower rates or no deduction of income-tax 19[***], as the case may be, the 20[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 20[Assessing] Officer, deduct income-tax 21[***] at the rates specified in such certificate or deduct no tax, as the case may be.
22[(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) 23[***]
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Notes
23.Sub-section (3) omitted by the Finance Act, 1986, w.e.f. 1-4-1987. Earlier, sub-section (3) was substituted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.
22. Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.
21.Words “and super-tax” omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
20Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
19.Words “or super-tax” omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
18Words “or the total world income” omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
14 Inserted by the Finance Act, 2016, w.e.f. 1-6-2016.
13Inserted by the Finance Act, 2023, w.e.f. 1-4-2023.
12.Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004.
11. “, 194L” omitted by the Finance Act, 2003, w.e.f. 1-6-2003. Earlier, it was inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
10. Inserted by the Finance Act, 1995, w.e.f. 1-7-1995.
9Inserted by the Finance Act, 2003, w.e.f. 1-6-2003.
7.Inserted by the Finance Act, 2001, w.e.f. 1-6-2001.
5.Inserted by the Finance Act, 1993, w.e.f. 1-6-1993.
4.Inserted by the Finance Act, 2003, w.e.f. 1-6-2003.
3.Substituted by the Finance Act, 1992, w.e.f. 1-6-1992. Earlier, amendments were made by the Finance Act, 1965, w.e.f. 1-4-1965, Finance (No. 2) Act, 1967, w.e.f. 1-4-1967, Finance Act, 1972, w.e.f. 1-4-1972, Finance Act, 1973, w.e.f. 1-4-1973, Finance Act, 1978, w.e.f. 1-4-1978, Finance Act, 1986, w.e.f. 1-4-1987 and Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
2. Substituted for “Where, in the case of any income of any person other than a company” by the Finance Act, 1987, w.e.f. 1-6-1987.