Section 393Chapter 19

Tax to be deducted at source

(1)

Where any income or sum of the nature specified in column B of the Table below, is credited or paid or distributed by the person specified in column C during the tax year, to a resident, the person responsible for paying shall deduct income-tax,—

(a) on the entire amount of such income or sum, where the amount or aggregate of amounts exceeds the threshold limit specified in column D;

(b)

at the rate specified in column D;

(c)

at the time of credit of such income or sum to the account of the payee or at the time of its payment in cash or by way of a cheque or a draft or by any other mode, whichever is earlier; and (d) subject to the provisions of sub-sections (4), (5), (6), (8) and (9). Table FOR PAYMENTS TO RESIDENT Sl. No. Nature of Income or sum Payer Rate Threshold limit A B C D 1. Commission or brokerage

(i)

Income by way of Any person. Rate: Rates in force. remuneration or reward, —— whether by way of Threshold limit: commission or otherwise, ₹ 20,000 for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of insurance policies).

(ii)

Income by way of Specified Rate: 2% commission [not being person. —— insurance commission referred to in serial number Threshold limit: 1(i)] or brokerage. ₹ 20,000 2. Rent

(i)

Income by way of Person other Rate: 2% rent. than specified —— person. Threshold limit: ₹50,000 for a month or part of a month

(ii)

Income by way of Specified Rate:

(a) 2%, for the rent. person. use of any machinery or , plant, or equipment; and

(b) 10%, for the use of any land, or building (including factory building), or land appurtenant to a building (including factory building), or furniture, or 50 fittings. A B C D —— Threshold limit [for (a) and (b)]: ₹ 50,000 for a month or part of a month. Note 1.–– In serial number 2(i), the tax shall be deducted on such income at the time of—

(a) credit of rent to the account of the payee; or

(b) payment thereof in cash or by way of a cheque or a draft or any other mode, whichever is earlier, for the last month of the tax year or the last month of tenancy. 3. Payment on transfer of certain immovable property other than agricultural land

(i)

Any consideration Person Rate: 1% of such sum for transfer of any (other than the or stamp duty value of immovable property person who the property if more than (other than agricultural are required to ₹50,00,000 , whichever land). deduct tax is higher. under serial —— number Threshold limit: 3(iii)). ₹50,00,000.

(ii)

Any Any person. Rate: 10% consideration, not being —— consideration in kind, Threshold limit: Nil. under the agreement referred to in section 67section 67(14).

(iii)

Sum, being in the Any person. Rate: 10% nature of— ——

(a) compensation or Threshold limit: the enhanced ₹5,00,000 compensation; or

(b) consideration or the enhanced consideration, on account of compulsory acquisition, under any law for the time being in force, of any immovable property (other than agricultural land). Note 1.––Consideration for transfer of any immovable property under serial number 3(i) shall be the aggregate of the amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of such immovable property for the purposes of the threshold limit mentioned in column D. Note 2.— In case of consideration on which provisions of both serial numbers 3(i) and 3(ii) are applicable, tax shall be deducted under 3(ii) only. A B C D 4. Income from capital market

(i)

Any income in Any person. Rate: 10% respect of— —— (a) units of a Mutual Threshold limit: Fund specified under ₹ 10,000. Schedule VII (Table: Sl. No. 20 or 21); or (b) units from the Administrator of the specified undertaking; or (c) units from the specified company.

(ii)

Any distributed Any Rate: 10% income referred to in Business —— section 223section 223, referred to Trust. Threshold limit: Nil. in Schedule V (Table: Sl. Nos. 3 and 4) or (Table: Sl. No. 4), payable to a unitholder of a Business Trust.

(iii)

Any income, other Any Rate: 10% than that proportion of Investment —— income which is exempt fund specified Threshold limit: Nil under Schedule V (Table: in section 224section 224. Sl. No. 2), in respect of units of an investment fund specified in section 224section 224, payable to its unitholder.

(iv)

Any income, in Any Rate: 10% respect of an investment securitisation —— in a securitisation trust trust specified Threshold limit: Nil. specified in section 221section 221 in section 221section 221. to an investor. 5. Interest income

(i)

Any income by way Any person. Rate: Rates in force. of Interest on securities —— Threshold limit: ₹10,000

(ii)

Any income by (a) A Rate: Rates in force. way of interest other banking —— than interest on company; or Threshold limit: (a) securities. (b) a co- ₹1,00,000 in the case of operative a senior citizen; society (b) ₹50,000 in case of carrying on the person other than senior business of citizen. banking; or (c) a post office for a 50 deposit made under a scheme notified by the Central 55 A B C D

(iii)

Any income being Specified Rate: Rates in force. interest other than person [other —— interest on securities. than person in Threshold limit: Sl. No. 5(ii).C] ₹10,000. Note 1.— In serial number 5(ii) and (iii), where the interest income credited or paid is in respect of— (a) time deposits with a banking company; or (b) time deposits with a co-operative society engaged in carrying on the business of banking; or (c) deposits with a public company formed and registered in India with the main object of carrying on business of long-term finance for construction or purchase of houses in India for residential purposes and is eligible for deduction under section 32section 32(e), and the person mentioned in column C has not adopted core banking solutions, the threshold limit in column D shall be computed with reference to the income credited or paid by a branch of such person. Note 2.—The person responsible for making the payment referred to in serial numbers 5(ii) and (iii) of this Table, may at the time of making any deduction, increase or reduce the amount to be deducted for the purpose of adjusting any excess or deficiency arising out of any previous deduction or failure to deduct during the tax year. 6. Payments to contractors, fees for professional and technical services, etc.

(i)

Any sum for Any Rate:

(a) 1%, if carrying out any work designated contractor is individual (including supply of person. or Hindu undivided labour for carrying out family; any work) in pursuance (b) 2%, if contractor is of a contract between the a person other than the contractor and a person mentioned in (a). designated person. —— Threshold limit: [for (a) and (b)] (a) ₹30,000; or aggregate of amount; and

(b) ₹1,00,000 in case of aggregate of amounts.

(ii)

Any sum–– Any person, Rate: 2%. being an % (a) for carrying out —— individual or any work (including Threshold limit: Hindu supply of labour for ₹50,00,000. undivided carrying out any work) family [other in pursuance of a than those contract; or required to (b) by way of fees for deduct professional services; or income-tax as per Sl. No. 6(i) and (iii) or Sl. No. 1(ii)] A B C D (c) by way of commission [not being insurance commission referred to in serial number 1(i)] or brokerage.

(iii)

Any sum by way Specified Rate: (a) 2% of such of–– person. sum in case of—

(a) fees for (i) fees for technical professional services; services (not being a or professional services); or

(b) fees for technical services; or

(ii) royalty in the nature of consideration (c) remuneration or for sale, distribution or fees or commission by exhibition of whatever name called, cinematographic films; other than those on or which tax is deductible under (iii) payee, engaged section 392section 392, to a only in the business of director of a company; operation of call centre; or (b) 10% of such sum (d) royalty; or in cases other than (a) (e) any sum referred —— to in section 26section 26(2)(h). Threshold limit: [for (a) and (b)]: ₹ 50,000. Note.––In serial number 6 (i), if any sum is paid or credited for carrying out any work specified in section 402section 402(47)(e), tax shall be deducted at source—

(a) on the invoice value excluding the value of material, if such value is specified separately in the invoice; or

(b) on the whole of the invoice value, if the value of material is not specified separately in the invoice. 7. Dividend Any dividends Any Rate: 10%. (including on preference domestic —— shares) declared. company. Threshold limit: Nil. Note.––The tax shall be deducted at source before making any distribution or payment of dividend. 8. Other cases

(i)

Any sum under a Any person. Rate: 2% on income life insurance policy, comprised in such sum. including the sum —— allocated as bonus on Threshold limit: such policy, other than ₹1,00,000 the amount not includible in the total 50 income under Schedule II (Table: Sl. No. 2). A B C D

(ii)

Any sum for Any person, Rate: 0.1% of such purchase of any goods. being a buyer. sum exceeding ₹50,00,000. —— Threshold limit: ₹50,00,000.

(iii)

Total income of a specified Rate: Rates in force. specified senior citizen bank. —— after allowing deduction Threshold limit: Nil. under Chapter VIII and rebate under section 156section 156.

(iv)

Any benefit or Any Rate: 10% of value or perquisite, whether specified aggregate of values of convertible into money person. such benefit or or not, arising from perquisite. business or the exercise —— of a profession of any Threshold limit: resident. ₹ 20,000.

(v)

Sale of goods or Any Rate: 0.1% of gross provision of services by e-commerce amount of such sale or an e-commerce operator. services or both. participant, facilitated —— by an e-commerce Threshold limit: Nil. operator through its digital or electronic facility or platform.

(vi)

Any sum by way Any person. Rate: 1%. of consideration for —— transfer of a virtual digital asset. Threshold limit: Nil. Note1.––The deduction of tax under serial number 8(ii) shall not apply to a transaction on which tax is deductible or collectible under any of the provisions of the Act. Note 2.––The provisions of serial number 8(iv) shall apply to any benefit or perquisite, whether in cash or in kind or partly in cash and partly in kind, provided to a resident. Note 3.––In respect of serial number 8(v)–– (a) for deduction of tax, the provisions thereof shall take precedence over any other provisions of this Chapter;

(b)

any payment made by a purchaser of goods or recipient of services directly to an e-commerce participant for the sale of goods or provision of services or both, facilitated by an e-commerce operator, shall be deemed to be the amount credited or paid by the e-commerce operator to the e-commerce participant and this amount shall be included in the gross amount of such sale or services for the purposes of deduction of income-tax under this serial number;

(c)

e-commerce operator shall be deemed to be the person responsible for paying to e-commerce participant;

(d)

irrespective of anything contained in this Chapter, if— (i) tax has been deducted on a transaction under this serial number; or (ii) a transaction is not liable for tax deduction as provided in section 393(4) (Table: Sl. No. 11), then tax shall not be deducted on such transaction under any other provision of this Chapter;

(e)

clause (d) shall not apply to any amount or aggregate of amounts received or receivable by an e-commerce operator for—

(i) hosting advertisements; or

(ii) providing any other services, which are not in connection with the sale or services referred to in this serial number. Note 4.––In case of a transaction on which provisions of serial number 8(v) are applicable along with the provisions of serial number 8(vi) for deduction of tax, then tax on such transaction shall be deducted only under the provisions of serial number 8(vi). Note 5.—The provisions of serial number 8(iii) shall take precedence over any other provisions of this Chapter and tax shall be deducted under this provision. Note 6.—For serial numbers 8(iv) and (vi),—

(a) where the consideration or benefit or perquisite is—

(i) in exchange of another virtual digital asset where there is no part in cash, in respect of serial number 8(iv); or

(ii) is wholly in kind; or

(iii) is partly in kind and partly in cash, but such part in cash is not sufficient to meet the liability of deduction of tax in respect of the whole of such payment or benefit or perquisite, the person responsible for paying or providing shall ensure that the tax required to be deducted has been paid, before releasing such consideration or providing such benefit or perquisite, as the case may be.

(b)

“person responsible for providing” means the person providing such benefit or perquisite, or in case of a company, the company itself including the principal officer thereof.

(2)

Where any income or sum of the nature specified in column B of the Table below, is credited or paid by the person specified in column D during the tax year, to a non-resident specified in column C, the person responsible for paying shall deduct income-tax on the amount of such income or sum,— (a) at the rate specified in column E;

(b)

at the time of credit of income or sum to the account of the payee or at the time of its payment in cash or by way of a cheque or a draft or by any other mode, whichever is earlier; and

(c) subject to the provisions of sub-sections (4), (8) and (9). Table FOR PAYMENTS TO NON-RESIDENT Sl. Nature of Income or sum Payee Payer Rate No. A B C D E 1. Any income referred (a) A non- Any person. 20%. to in section 211section 211. resident sportsman (including an athlete) or an entertainer, who is not a citizen of India; or (b) a non-resident sports association or institution. 2. Any income by way of Any non- Any Indian 5%. interest payable in respect resident (not company or a of monies borrowed in being a business trust. foreign currency from a company) source outside India,— or a foreign company.

(a)

under a loan agreement or issue of long-term infrastructure bond on or after the 1st July, 2012 but before the 1st July, 2023; or (b) by way of issue of any long-term bond on or after the 1st October, 2014 but before the 1st July, 2023, which is approved by the Central Government in this behalf. 3 Any income by way of Any non- Any Indian 5%. interest payable in respect resident (not company or a of monies borrowed from a being a business trust. source outside India by way company) of issue of rupee or a foreign denominated bond before company. the 1st July, 2023. A B C D E 4. Any income by way of Any non- Any Indian (a) 4%, interest payable in respect resident company or a where issued of monies borrowed from (not being a business trust. on or after the a source outside India by company) 1st April, 2020 way of issue of any long- or a foreign but before the term bond or rupee company. 1st July, 2023; denominated bond, which or is listed only on a (b) 9%, recognised stock where issued exchange located in any on or after the International Financial 1st July, 2023. Services Centre. 5. Any income by way of Any non- Any 5%. interest. resident infrastructure (not being a debt fund company) referred to in or a foreign Schedule VII company. (Table: Sl. No. 46). Any distributed income Any unit Any business (a) 5%, in 6. referred to in section 223section 223, holder, trust. case of income being of the nature referred being a of the nature to in Schedule V (Table: Sl. non- referred to in No. 3). resident Schedule V (not being a [Table: Sl. No. company) 3.B(a)]; and or a foreign (b) 10%, in company. case of income of the nature referred to in Schedule V [Table: Sl. No. 3.B(b)]. 7 Any distributed income Any unit Any business Rates in force. referred to in section 223section 223, holder, trust. being of the nature referred being a to in Schedule V (Table: Sl. non- No. 4). resident (not being a company) or a foreign company. 8 Any income, other than Any unit Any Rates in force. that proportion of income holder, investment fund which is exempt under being a specified in Schedule V (Table: Sl. No. non- section 224section 224. 2), in respect of units of an resident investment fund specified in (not being a section 224section 224. company) 50 or a foreign company. A B C D E 9. Any income in respect Any Any Rates in of an investment in a investor, securitisation force. securitisation trust being a non- trust specified specified in section 221section 221. resident (not in section 221section 221. being a company) or a foreign company. 10. Any income— Any non- Any As per resident (not Note 2. (a) in respect of units of person. being a a Mutual Fund specified company) or under Schedule VII a foreign (Table: Sl. No. 20) or company. (Table: Sl. No. 21); or (b) from the specified company. 11. Any income in respect Any Any person. 10%. of units referred to in Offshore section 208section 208. fund. 12. Any income by way of Any Any person. 12.5%. long-term capital gains offshore arising from the transfer fund. of units referred to in section 208section 208; 13. Any income by way of Any non- Any person. 10%. interest or dividends in resident. respect of bonds or Global Depository Receipts referred to in section 209section 209. 14. Any income by way of Any non- Any person. 12.5%. long-term capital gains resident. arising from the transfer of bonds or Global Depository Receipts referred to in section 209section 209. 15. Any income in respect Any Any person. As per of securities referred to in Foreign Note 2. section 210section 210(1)(Table: Sl. Institutional No. 1). Investor. 16. Any income in respect a specified Any person. 10%. of securities referred to in fund, referred section 210section 210(1)(Table: Sl. to in Schedule No. 1). VI [ Note 1(g)]. 17. Any interest (not being Any non- Any person. Rates in interest referred to against resident (not force. serial numbers 2, 3, 4 and 5) being a company) or or any other sum a foreign chargeable under the company. provisions of this Act, not being income chargeable under the head “Salaries”.

(3)

Where any income or sum of the nature specified in column B of the Table below, is credited or paid by the person specified in column D during the tax year, to any person, the person responsible for paying the amount specified in column C, shall deduct income-tax on such amount—

(a) at the rate specified in column E;

(b)

at the time of payment thereof in cash or by way of a cheque or a draft or by any other mode, or as specified therein; and (c) subject to the provisions of sub-sections (4), (5), (6), (8) and (9). Table FOR PAYMENTS TO ANY PERSON Sl. No.Nature of Income or sum Payer Rate Threshold limit A B C D 1. Any income by way of Any person. Rate: Rates in force. winnings (other than —— winnings from serial Threshold limit: number 2) from–– ₹10,000 in case of a (a) any lottery; or single transaction.

(b)

crossword puzzle; or

(d) gambling or betting of any form or nature whatsoever 2. Any income by way of Any person. Rate: Rates in force. winnings from online —— game. Threshold limit: Net winnings as per Note 1. 3. Any income by way of Any person, being a Rate: Rates in force. winnings from any horse bookmaker or a —— race. person to whom a Threshold lilmit: licence has been ₹10,000 in case of a granted by the single transaction. Government under any law for the time being in force for horse racing in any race course or for arranging for wagering or betting in any race course. 4. Any income, credited or Any person. Rate: 2%. paid to a person, who is or —— has been stocking, Threshold limit: distributing, purchasing or ₹20,000. selling lottery tickets, by way of commission, 50 remuneration or prize (by whatever name called) on such tickets. A B C D 5. Any sum, paid in cash, Every person, Rate: 2%. from one or more being,— —— accounts maintained by (a) a banking Threshold limit: the deductee. company to which ₹3,00,00,000 in case of the Banking deductee being, a co- Regulation Act, operative society; or 1949 applies (including any (b) ₹1,00,00,000 bank or banking in case of deductee institution being person other than a referred to in co-operative society. section 51section 51 of that Act);

(b)

a co-operative society engaged in carrying on the business of banking; or

(c) a post office. 6. Any amount referred to Any person. Rate: 10%. in section 80CCA(2)(a) of —— the Income-tax Act, 1961 (43 of 1961). Threshold limit: ₹2,500. 7. Any sum in the nature Any person, Rate: 10% of salary, remuneration, being a firm. —— commission, bonus or Threshold limit: interest paid to a partner ₹20,000. of the firm or credited to his account (including capital account).

(4)

The deduction of tax at source shall not be made under the provisions referred to in column B of the Table below, in respect of the income or sum, specified in column C: Table FOR NO DEDUCTION AT SOURCE Sl. No. Provisions for tax Condition for no deduction deduction at source A B C 1. Commission or Commission or brokerage payable by Bharat Brokerage referred to Sanchar Nigam Limited or Mahanagar in section Telephone Nigam Limited to their public call 393(1)[Table: Sl. No. office franchisees. 1(ii)]. 2. Rent referred to in Income by way of rent credited or paid to a section 393(1)[Table: business trust, being a real estate investment trust, Sl. No. 2(ii)]. in respect of any real estate asset, referred to in Schedule V (Table: Sl. No. 4), owned directly by such business trust. A B C 3. Compensation on Income by way of any award or agreement acquisition of certain which has been exempted from levy of income- immovable property tax under section 96section 96 of the Right to Fair referred to in section Compensation and Transparency in Land 393(1)[Table: Sl. No. Acquisition, Rehabilitation and Resettlement 3(iii)]. Act, 2013 (30 of 3013). 4. Income in respect of If income is of the nature of capital gain. units referred to in section 393(1)[Table: Sl. No. 4(i)]. 5. Income from units of Income of the nature referred to in Schedule V a business trust referred [Table: Sl. No. 3.B(b)], if the special purpose to in section vehicle referred to in the said clause has not 393(1)[Table: Sl. No. exercised the option under section 200section 200. 4(ii)]. 6. Interest on securities (a) Interest payable on–– referred to in section (i) National Development Bonds; 393(1)[Table: Sl. No.

(ii)

such debentures, issued by such institution or 5(i). authority or person as the Central Government may, by notification, specify in this behalf;

(iii)

any security of the Central Government or a State Government, other than––

(A) 8% Savings (Taxable) Bonds, 2003; or

(B) 7.75% Savings (Taxable) Bonds, 2018; or

(C)

Floating Rate Savings Bonds, 2020 (Taxable); or

(D) any other security of the Central Government or State Government as the Central Government may, by notification, specify in this behalf;

(b)

interest payable to–– (i) the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956, in respect of any securities owned by it or in which it has full beneficial interest; or (ii) the General Insurance Corporation of India or to any of the four companies, formed by virtue of the schemes made under section 16section 16(1) of the General Insurance Business (Nationalisation) Act, 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 (iii) any other insurer in respect of any securities owned by it or in which it has full beneficial interest; or (iv) a “business trust”, as defined in section 2section 2(21), in respect of any securities, by a special purpose vehicle referred to in Schedule V (Table: 50 Sl. No. 3 ). A B C 7. Interest other than (a) Interest income credited or paid to— Interest on securities (i) any banking company; or referred to in section (ii) any financial corporation established 393(1)[Table: Sl. No. by or under a Central Act or State Act or 5(ii) and 5(iii)]. Provincial Act; or (iii) the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956); or (iv) the Unit Trust of India; or (v) any company or co-operative society carrying on the business of insurance; or (vi) such other institution, association or body or class of institutions, associations or bodies which the Central Government may, for reasons to be recorded in writing, notified in this behalf before the 1st April, 2020;

(b)

interest income credited or paid––

(i) by a co-operative society (other than a co-operative bank) to a member thereof; or

(ii) by a co-operative society to any other co-operative society; or

(iii) in respect of 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; or

(iv) in respect of deposits (other than time deposits made on or after the 1st July, 1995) with a co-operative society, other than a co-operative society or bank referred to in sub-clause (iii), engaged in the business of banking, Where the total sales, gross receipts or turnover of the co-operative society does not exceed ₹50,00,00,000 during the tax year immediately preceding the tax year in which such interest is credited or paid;

(c)

interest income credited or paid—

(i) by the Central Government under any provision of this Act or the Income-tax Act, 1961 (43 of 1961), 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), the Companies (Profits) Surtax Act, 1964 (7 of 1964), or the Interest-tax Act, 1974 (45 of 1974);

(ii)

in respect of deposits under any scheme framed by the Central Government and notified by it in this behalf;

(iii)

in respect of deposits (other than time deposits made on or after the 1st July, 1995) with a banking company; A B C (iv) by way of interest on the compensation amount awarded by the Motor Accidents Claims Tribunal where the amount of such income or, the aggregate of the amounts of such income does not exceed ₹50,000 during the tax year; (v) or payable by an infrastructure capital company; or infrastructure capital fund; or infrastructure debt fund; or a public sector company; or scheduled bank in relation to a zero coupon bond issued on or after the 1st June, 2005 by such company or fund or public sector company or scheduled bank;

(vi)

as referred to in Schedule V (Table: Sl. No. 3);

(vii)

by a firm to a partner of the firm. 8. Payments to (a) When–– contractors referred (i) any sum credited or paid or likely to be to in section credited or paid during the tax year to the 393(1)[Table: Sl. No. account of a contractor during the course of 6(i)]. business of plying, hiring or leasing goods carriages; and (ii) that contractor owns ten or less goods carriages at any time during the tax year; and (iii) furnishes a declaration to that effect along with his Permanent Account Number to the person paying the sum; and (iv) the person responsible for paying to the contractor furnishes to the prescribed income-tax authority the particulars in such form and within such time as prescribed;

(b)

where such sum is credited or paid by individual or Hindu undivided family exclusively for personal purposes of such individual or any member of Hindu undivided family. 9. Fees for Where such sum is credited or paid by professional or individual or Hindu undivided family exclusively technical services for personal purposes of such individual or any referred to in section member of Hindu undivided family. 393(1)[Table: Sl. No. 6(iii)]. 10. Dividend referred to Dividend income credited or paid to— in section 393(1)(Table:

(a)

the Life Insurance Corporation of India Sl. No. 7). established under the Life Insurance Corporation Act, 1956, in respect of any shares owned by it or in which it has full beneficial interest; A B C (b) the General Insurance Corporation of India or to any of the four companies, formed by virtue of the schemes made under section 16section 16(1) of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972), in respect of any shares owned by the Corporation or such company or in which the Corporation or such company has full beneficial interest;

(c)

any other insurer in respect of any shares owned by it or in which it has full beneficial interest;

(d)

a “business trust”, as defined in section 2section 2(21), by a special purpose vehicle referred to in Schedule V (Note 2);

(e)

any other person as notified by the Central Government in this behalf;

(f)

a shareholder, being an individual, if— (I) the dividend is paid by the company by any mode other than cash; and (II) amount or aggregate of amounts of such dividend distributed or paid or likely to be distributed or paid during the tax year does not exceed ₹10,000. 11. Payment by If the amount is credited or paid or likely to be e-commerce operator credited or paid during the tax year to the account to e-commerce of an e-commerce participant, which is–– participant referred to (a) an individual or a Hindu undivided in section family; and 393(1)[Table: Sl. No. 8(v)]. (b) the gross amount of the sales or services or both during the tax year does not exceed ₹5,00,000; and (c) the e-commerce participant has furnished the Permanent Account Number or Aadhaar number to the e-commerce operator. 12. Payment on Where value or aggregate value of such transfer of virtual consideration during the tax year does not digital asset referred exceed–– to in section (a) ₹50,000, when payable by an individual 393(1)[Table: Sl. No. or a Hindu undivided family,— 8(vi)] (i) whose total sales, gross receipts or turnover from the business carried on by him or profession exercised by him does not exceed ₹1,00,00,000 in case of business or ₹50,00,000 in case of profession, during the tax year immediately preceding the tax year in which such virtual digital asset is transferred;

(ii)

not having any income under the head “Profits and gains of business or profession”;

(b)

₹10,000, when payable by any person other than the person referred to in clause (a). A B C 13. Income from units of a Income of the nature referred to in Schedule V business trust referred to [Table: Sl. No. 3.B(b)], if the special purpose in section 393(2)(Table: vehicle referred to in the said clause has not Sl. No. 6). exercised the option under section 200section 200. 14. Income in respect of Income that is not chargeable to tax under the units of investment provisions of this Act. fund referred to in section 393(2)(Table: Sl. No. 8). 15. Income in respect of Income payable in respect of units of the Unit units of non-residents Trust of India to a non-resident Indian or a referred to in section non-resident Hindu undivided family, subject to 393(2)(Table: Sl. No. prescribed conditions. 10). 16. Income of Foreign Income, by way of capital gains arising from Institutional Investors the transfer of securities referred to in from securities referred section 210section 210, if payable to a Foreign Institutional to in section Investor. 393(2)(Table: Sl. No. 15). 17. Income of Specified Income exempt at Schedule VI (Table: Sl. No. 1) Fund from securities to (Table: Sl. No. 4). referred to in section 393(2)(Table: Sl. No. 16). 18. Payment of certain Payment made to— amounts in cash referred (a) the Government; to in section (b) any banking company or co-operative 393(3)(Table: Sl. No. 5). society engaged in carrying on the business of banking or a post office;

(c)

any business correspondent of a banking company or co-operative society engaged in carrying on the business of banking, as per the guidelines issued in this regard by the Reserve Bank of India under the Reserve Bank of India Act, 1934 (2 of 1934);

(d)

any white label automated teller machine operator of a banking company or co-operative society engaged in carrying on the business of banking, as per the authorisation issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007 (51 of 2007). 19. Payment in respect of Payment made to— deposits under National (a) an assessee being and individual; Savings Scheme, etc., (b) heirs of an assessee. referred to in section 393(3)(Table: Sl. No. 6).

(5)

Irrespective of anything contained in this Chapter, the tax shall not be deducted by any person from any amount payable to–– (a) the Government; or (b) the Reserve Bank of India; or (c) a corporation established by or under a Central Act which is, under any law in force, exempt from income-tax on its income; or (d) a Mutual fund as specified at Schedule VII (Table: Sl. No. 20 or 21), where such amount is payable to it by way of— (A) interest; or (B) dividend in respect of any securities or shares owned by it or in which it has full beneficial interest; or (C) any other income accruing or arising to it.

(6)

The deduction of tax shall not be made under provisions referred to in column C of the Table below, in the case of a person as specified in column B, if such person furnishes to the person responsible for paying any income or sum of the nature referred to in such provisions, a written declaration in duplicate in such form and manner as prescribed that the tax on such person’s estimated total income of the tax year in which such income or sum is to be included in computing his total income shall be nil. Table DECLARATION FOR NO DEDUCTION AT SOURCE Sl. No. Person Provisions for tax deduction at source A B C 1. An individual, who Dividend referred to in section 393(1)(Table: Sl. is a resident of India. No. 7). 2. (a) An individual, (a) Payment of accumulated balance due to an resident of India, who employee referred to in section 392section 392(7); is of the age of sixty

(b)

Insurance Commission referred to in section years or more at any 393(1)[Table: Sl. No. 1(i)]; time during the tax year; (c) rent referred to in section 393(1)[Table: Sl. No. 2(ii)];

(b)

any person (not being a company or a (d) income in respect of units referred to in firm). section 393(1)[Table: Sl. No. 4(i)];

(e)

interest referred to in section 393(1)[Table: Sl. No. 5(i)], [(ii)] and (iii);

(f)

payment in respect of Life Insurance Policy referred to in section 393(1)[Table: Sl. No. 8(i)]. Note.––The provisions of this sub-section shall not apply where the aggregate of amounts of any income or sum of the nature referred to in provision mentioned in column C of this Table, is credited or paid or likely to be credited or paid during the relevant tax year in which such income or sum is to be included, exceeds the maximum amount not chargeable to tax.

(7)

The person responsible for paying any income or sum of the nature referred in sub-section (6) shall deliver or cause to be delivered, one copy of the declaration referred therein, received from the person to the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, on or before the seventh day of the month following the month in which the declaration is furnished to him.

(8)

Irrespective of anything contained in sub-section (6), the deduction of tax shall not be made from the interest paid by an Offshore Banking Unit on a borrowing or deposit made on or after 1st April, 2005, by a non-resident or a person not ordinarily resident in India.

(9)

Irrespective of anything contained in this Chapter, the deduction of tax shall not be made from any payment to a person for, or on behalf of, the New Pension System Trust referred to in Schedule VII (Table: Sl. No. 41).

(10)

In a case other than that referred to in section 392section 392(2)(a), where under an agreement or an arrangement, if the tax chargeable on any income of the recipient referred to in this Chapter is to be borne by the payer, then, for the purposes of deduction of tax, the income shall be increased to an amount which after deduction of tax as per provisions of this Chapter becomes equal to the net amount payable under such agreement or arrangement.

(11)

The credit of any income or sum to any account, whether called “suspense account” or by any other name, in the books of account of the person liable to pay such income or sum, shall be deemed to be the credit of such income or sum to the account of the payee and the provisions of this section shall apply accordingly.