- [The person responsible for paying to a resident any income] [ Substituted by Act 32 of 2003, Section 72, for " The person responsible for paying any income" (w.e.f. 1.6.2003).] [by way of interest on securities] [ Substituted by Act 26 of 1988, Section 37, for `chargeable under the head " Interest on securities" ' (w.e.f. 1.4.1989).] shall, at the time of credit of such income to the account of the payee or [at the time of payment] [ Substituted by Act 13 of 1989, Section 22, for " at the time of payment" (w.e.f. 1.6.1989).] thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax [* * *] [ Certain words omitted by Act 10 of 1965, Section 45 (w.e.f. 1.4.1965).] at the rates in force on the amount of the interest payable:[* * *] [ Omitted by Act 12 of 1992, Section 70 (w.e.f. 1.6.1992).][Provided ] [Substituted by Act 15 of 1965, Section 13, for the proviso (w.e.f. 11.9.1965) ][* * *] [ Omitted by Act 12 of 1992, Section 70 (w.e.f. 1.6.1992).][that no tax shall be deducted from-(i)any interest payable on 41/4 per cent. National Defence Bonds, 1972, where the bonds are held by an individual, not being a non-resident; or](ia)[ any interest payable to an individual on 41/4 per cent. National Defence Loan, 1968, or 43/4 per cent. National Defence Loan, 1972; or] [ Inserted by Act 41 of 1965, Section 4 (w.e.f. 4.12.1965).](ib)[ any interest payable on National Development Bonds; or] [ Inserted by Act 19 of 1978, Section 20 (w.r.e.f. 1.4.1978).][* * *] [ Clause (iii) omitted by Act 26 of 1988, Section 37 (w.e.f. 1.4.1989).](iia)[ any interest payable on 7-Year National Savings Certificates (IV Issue); or] [ Inserted by Act 19 of 1970, Section 22 (w.r.e.f. 1.4.1970).](iib)[ any interest payable on such debentures, issued by any institution or authority, or any public sector company, or any co-operative society (including a co-operative land mortgage bank or a co-operative land development bank), as the Central Government may, by notification in the Official Gazette, specify in this behalf;] [ Substituted by Act 23 of 1986, Section 29, for Clause (iib) (w.e.f. 1.6.1986).][** *] [ Explanation omitted by Act 11 of 1987, Section 74 (w.r.e.f. 1.4.1987).](iii)any interest payable on 61/2 per cent. Gold Bonds, 1977, or 7 per cent. Gold Bonds, 1980, where the Bonds are held by an individual not being a non-resident, and the holder thereof makes a declaration in writing before the person responsible for paying the interest that the total nominal value of the 61/2 per cent. Gold Bonds, 1977, or, as the case may be, the 7 per cent. Gold Bonds, 1980, held by him (including such bonds, if any, held on his behalf by any other person) did not in either case exceed ten thousand rupees at any time during the period to which the interest relates;[* * *] [ Clause (iiia) omitted by Act 26 of 1997, Section 46 (1.6.1997).](iv)[ any interest payable on any security of the Central Government or a State Government:] [ Substituted by Act 26 of 1997, Section 46, for Clause (iv) (w.e.f. 1.6.1997).][Provided that nothing contained in this clause shall apply to the interest exceeding rupees ten thousand payable on 8% Savings (Taxable) Bonds, 2003 [or 7.75% Savings (Taxable) Bonds, 2018] [ Inserted by Act 22 of 2007, Section 52 (w.e.f. 1.6.2007).] during the financial year;](v)[ any interest payable to an individual, who is resident in India, on debentures issued by a company in which the public are substantially interested, being debentures listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956), and any rules made thereunder, if- [ Inserted by Act 21 of 1984, Section 22 (w.e.f. 1.6.1984).](a)the interest is paid by the company by an account payee cheque; and(b)the amount of such interest or, as the case may be, the aggregate of the amounts of such interest paid or likely to be paid during the financial year by the company to such individual does not exceed ][two thousand and five hundred rupees] [ Substituted by Act 13 of 1989, Section 22, " one thousand rupees" (w.e.f. 1.6.1989).];](vi)[ any interest payable to the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956), in respect of any securities owned by it or in which it has full beneficial interest; or [ Inserted by Act 20 of 2002, Section 72 (w.e.f. 1.6.2002).](vii)any interest payable to the General Insurance Corporation of India (hereafter in this clause referred to as the Corporation) or to any of the four companies (hereafter in this clause referred to as such company), formed by virtue of the schemes framed under sub-section (1) of section 16 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972), in respect of any securities owned by the Corporation or such company or in which the Corporation or such company has full beneficial interest; or(viii)any interest payable to any other insurer in respect of any securities owned by it or in which it has full beneficial interest;](ix)[ any interest payable on any security issued by a company, where such security is in dematerialised form and is listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and the rules made thereunder.] [ Inserted by Act 18 of 2008, Section 42 (w.e.f. 1.6.2008).][Explanation ] [Inserted by Act 13 of 1989, Section 22 (w.e.f. 1.6.1989).][* * *] [ Omitted by Act 18 of 1992, Section 70 (w.e.f. 1.6.1992).][.-For the purposes of this section, where any income by way of interest on securities 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.] [Inserted by Act 13 of 1989, Section 22 (w.e.f. 1.6.1989).][* * *] [Inserted by Act 13 of 1989, Section 22 (w.e.f. 1.6.1989).]
