- [(1) Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest ] [Substituted by Act 11 of 1987, Section 49, for sub-Section (1) (w.e.f. 1.6.1987).][* * *] [ Certain words omitted by Act 32 of 2003, Section 80 (w.e.f. 1.6.2003).][or any other sum chargeable under the provisions of this Act (not being income chargeable under the head "Salaries" ] [Substituted by Act 11 of 1987, Section 49, for sub-Section (1) (w.e.f. 1.6.1987).] [* * *] [ Omitted by Act 49 of 1991, Section 56 (w.e.f. 1.10.1991).][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:] [Substituted by Act 11 of 1987, Section 49, for sub-Section (1) (w.e.f. 1.6.1987).][Provided that in the case of interest payable by the Government or a public sector bank within the meaning of clause (23-D) 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:] [ Inserted by Act 36 of 1989, Section 23 (w.r.e.f. 1.6.1987).][Provided further that no such deduction shall be made in respect of any dividends referred to in section 115-O.] [ Inserted by Act 32 of 2003, Section 80 (w.e.f. 1.6.2003).][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.] [Substituted by Act 11 of 1987, Section 49, for sub-Section (1) (w.e.f. 1.6.1987).](2)Where the person responsible for paying any such sum chargeable under this Act [(other than salary)] [ Substituted by Act 32 of 2003, Section 80, for " (other than interest on securities and salary)" (w.e.f. 1.6.2003).] 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 [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).] to determine, [by general or special order] [ Substituted by Act 26 of 1988, Section 39, for " in the prescribed manner" (w.r.e.f. 1.3.1988).], 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.[* * *] [ Omitted by Act 49 of 1991, Section 56 (w.e.f. 1.10.1991).](3)[ Subject to rules 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 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 ] [Inserted by Act 19 of 1970, Section 24 (w.r.e.f. 1.4.1970).] [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).] [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.] [Inserted by Act 19 of 1970, Section 24 (w.r.e.f. 1.4.1970).](6)[ The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum, whether or not chargeable under the provisions of this Act, shall furnish the information relating to payment of such sum, in such form and manner, as may be prescribed.] [Substituted by Finance Act, 2015 (No. 20 of 2015), dated 14.5.2015.]
