Income Tax Act, 1961
Section 14: The Explanation omitted by Act 11 of 1987, s. 74 (w.e.f. 11987).
14. The Explanation omitted by Act 11 of 1987, s. 74 (w.e.f. 11987).
636
declaration in writing before the person responsible for paying the interest that the total nominal value
of the 6½ 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;]
1* * * * *
2[(iv) any interest payable on any security of the Central Government or a State Government:]
3[Provided that nothing contained in this clause shall apply to the interest exceeding rupees ten
thousand payable on 8% Savings (Taxable) Bonds, 2003 4[or 7.75% Savings (Taxable) Bonds, 2018]
during the financial year;]
5[(v) any interest payable to an individual or a Hindu undivided family, who is resident in India,
on any debenture issued by a company in which the public are substantially interested, if—
(a) the amount of interest or, as the case may be, the aggregate amount of such interest paid
or likely to be paid on such debenture during the financial year by the company to such individual
or Hindu undivided family does not exceed five thousand rupees; and
(b) such interest is paid by the company by an account payee cheque;]
6[(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
(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;]
7[(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.]
8[Explanation 9***.—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.]
10* * * * *
any interest payable on any security of the Central Government or a State Government:]
3[Provided that nothing contained in this clause shall apply to the interest exceeding rupees ten
thousand payable on 8% Savings
Bonds, 2003 4[or 7.75% Savings
Bonds, 2018]
during the financial year;]
5[
any interest payable to an individual or a Hindu undivided family, who is resident in India,
on any debenture issued by a company in which the public are substantially interested, if—
the amount of interest or, as the case may be, the aggregate amount of such interest paid
or likely to be paid on such debenture during the financial year by the company to such individual
or Hindu undivided family does not exceed five thousand rupees; and
such interest is paid by the company by an account payee cheque;]
6[
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
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
of section 16 of the
General Insurance Business
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
any interest payable to any other insurer in respect of any securities owned by it or in which
it has full beneficial interest;]
7[
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
Act, 1956 (42 of 1956) and the rules made thereunder.]
8[Explanation 9***.—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.]
10* * * * *