Rule 209 — Application by payee for certificate authorising receipt of interest and other sums without deduction of tax
Parent Act Section(s): Section 266, Section 393, Section 395
Full Text
- Application by payee for certificate authorising receipt of interest and other sums without deduction of tax.— (1) Any person, as mentioned in column B of the following Table, entitled to receive any interest or any other sum of the nature specified in section 393(2) [Table: Sl. No. 17], on fulfilment of the conditions specified in column C thereof, may make an application in Form No. 126, for grant of a certificate under section 395(1) authorising him to receive without deduction of tax, any such income or sum as specified in column D thereof: Table Sl. Person Conditions Nature of income or sum No. A B C D
- Banking company or an (a) The person concerned has been Any income by way of insurer (as defined in regularly assessed to income-tax in interest, not being interest
section (2)(9)(d) of India and has furnished the returns of on securities (other than Insurance Act, 1938 (4 of income for last five tax years for which interest payable on 1938)), which is not a such returns became due on or before securities referred to in domestic company, and the date on which the application under section 393(4) [Table: Sl. which carries on this rule is made; No. 6]), or any other sum, operations in India not being dividends. through a branch. (b) he is not in default or deemed to be in default in respect of any tax (including advance tax and tax payable under section 266), interest, penalty, fine, or any other sum payable under the Act; and (c) the interest or other sum is receivable by the branches on their own account and not on behalf of its head office or any branch situated outside India, or any other person. 2. Any person other than the (a) The conditions specified in Sl. No. Any sum not being interest person referred to in Sl. 1; or dividends. No. 1 who carries on a business or profession in (b) he has been carrying on business or India through a branch. profession in India continuously for a period of not less than five years immediately preceding the date of the application; and (c) the value of the fixed assets in India of such business or profession as shown in his books of account for the tax year, which ended immediately before the date of the application, or where the accounts in respect of such tax year have not been made up before the said date, the tax year immediately preceding that year, exceeds fifty lakhs rupees. (2) The certificate granted by the Assessing Officer under section 395(1) shall be valid for the tax year specified therein, unless it is cancelled by him at any time before the expiry of the said tax year. (3) An application for a fresh certificate may be made, if required, after the expiry of validity of the earlier certificate, or within three months before the expiry thereof.
Cross-References
Act Sections Referenced
Related Rules
- None
Practical Notes
[To be populated — interpretive notes, circular references, case law pointers]