Income Tax Act, 2025
Section 8: Ins. by Act 11 of 1987, s. 47 (w.e.f. 11987).
8. Ins. by Act 11 of 1987, s. 47 (w.e.f. 11987).
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(3) The provisions of sub-section (1) shall not apply—
2[(i) where the amount of such income or, as the case may be, the aggregate of the amounts of
such income credited or paid or likely to be credited or paid during the financial year by the person
referred to in sub-section (1) to the account of, or to, the payee, 3[does not exceed—
(a) 4[forty thousand] rupees, where the payer is a banking company to which the Banking
Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution, referred to
in section 51 of that Act);
(b) 4[forty thousand] thousand rupees, where the payer is a co-operative society engaged in
carrying on the business of banking;
(c) 4[forty thousand] rupees, on any deposit with post office under any scheme framed by the
Central Government and notified by it in this behalf; and
(d) five thousand rupees in any other case]:]
5[Provided that in respect of the income credited or paid in respect of—
(a) time deposits with a banking company to which the Banking Regulation Act, 1949
(10 of 1949) applies (including any bank or banking institution referred to in section 51 of
that Act); or
(b) time deposits with a co-operative society engaged in carrying on the business of
banking;
(c) deposits with a public company which is formed and registered in India with the main
object of carrying on the business of providing long-term finance for construction or purchase
of houses in India 6[for residential purposes and which is eligible for deduction under clause
(viii) of sub-section (1) of section 36] 7***;
8*** the aforesaid amount shall be computed with reference to the income credited or paid by a branch of
the banking company or the co-operative society or the public company, as the case may be:]
9[Provided further that the amount referred to in the first proviso shall be computed with reference to
the income credited or paid by the banking company or the co-operative society or the public company, as
the case may be, where such banking company or the co-operative society or the public company has
adopted core banking solutions;]
The provisions of sub-section
shall not apply—
2[
where the amount of such income or, as the case may be, the aggregate of the amounts of
such income credited or paid or likely to be credited or paid during the financial year by the person
referred to in sub-section
to the account of, or to, the payee, 3[does not exceed—
4[forty thousand] rupees, where the payer is a banking company to which the Banking
Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution, referred to
in section 51 of that Act);
4[forty thousand] thousand rupees, where the payer is a co-operative society engaged in
carrying on the business of banking;
4[forty thousand] rupees, on any deposit with post office under any scheme framed by the
Central Government and notified by it in this behalf; and
five thousand rupees in any other case]:]
5[Provided that in respect of the income credited or paid in respect of—
time deposits with a banking company to which the Banking Regulation Act, 1949
(10 of 1949) applies (including any bank or banking institution referred to in section 51 of
that Act); or
time deposits with a co-operative society engaged in carrying on the business of
banking;
deposits with a public company which is formed and registered in India with the main
object of carrying on the business of providing long-term finance for construction or purchase
of houses in India 6[for residential purposes and which is eligible for deduction under clause
of sub-section
of section 36] 7***;
8*** the aforesaid amount shall be computed with reference to the income credited or paid by a branch of
the banking company or the co-operative society or the public company, as the case may be:]
9[Provided further that the amount referred to in the first proviso shall be computed with reference to
the income credited or paid by the banking company or the co-operative society or the public company, as
the case may be, where such banking company or the co-operative society or the public company has
adopted core banking solutions;]