Income Tax Act, 2025
Section 8: Ins. by Act 19 of 1970, s. 24 (w.e.f. 11970).
8. Ins. by Act 19 of 1970, s. 24 (w.e.f. 11970).
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(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.]
1[(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.]
2[(7) Notwithstanding anything contained in sub-section (1) and sub-section (2), the Board may, by
notification in the Official Gazette, specify a class of persons or cases, where 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 make an application to the Assessing Officer to
determine, by general or special order, the appropriate proportion of sum chargeable, and upon such
determination, tax shall be deducted under sub-section (1) on that proportion of the sum which is so
chargeable.]
3[195A. Income payable “net of tax”.—4[In a case other than that referred to in sub-section (1A)
of section 192, where under an agreement] or other arrangement, the tax chargeable on any income
referred to in the foregoing provisions of this Chapter is to be borne by the person by whom the income is
payable, then, for the purposes of deduction of tax under those provisions such income shall be increased
to such amount as would, after deduction of tax thereon at the rates in force for the financial year in which
such income is payable, be equal to the net amount payable under such agreement or arrangement.]
5[196. Interest or dividend or other sums payable to Government, Reserve Bank or certain
corporations.—Notwithstanding anything contained in the foregoing provisions of this Chapter, no
deduction of tax shall be made by any person from any sums payable to—
(i) the Government, or
(ii) the Reserve Bank of India, or
(iii) a corporation established by or under a Central Act which is, under any law for the time
being in force, exempt from income-tax on its income, or
(iv) a Mutual Fund specified under clause (23D) of section 10,
where such sum is payable to it by way of interest or dividend in respect of any securities or shares owned
by it or in which it has full beneficial interest, or any other income accruing or arising to it.]
6[196A. Income in respect of units of non-residents.—(1) Any person responsible for paying to a
non-resident, not being a company, or to a foreign company, any income in respect of units of a Mutual
Fund specified under clause (23D) of section 10 or of the Unit Trust of India 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 rate of
twenty per cent :
1. Subs. by Act 20 of 2015, s. 49, for sub-section (6) (w.e.f. 12015). Earlier sub-section (6) was inserted by
Act 18 of 2008, s. 44 (w.e.f. 12008).
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
and the conditions
subject to which such certificate may be granted and providing for all other matters connected therewith.]
1[
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.]
2[
Notwithstanding anything contained in sub-section
and sub-section
on that proportion of the sum which is so
chargeable.]
3[195A. Income payable “net of tax”.—4[In a case other than that referred to in sub-section
of section 192, where under an agreement] or other arrangement, the tax chargeable on any income
referred to in the foregoing provisions of this Chapter is to be borne by the person by whom the income is
payable, then, for the purposes of deduction of tax under those provisions such income shall be increased
to such amount as would, after deduction of tax thereon at the rates in force for the financial year in which
such income is payable, be equal to the net amount payable under such agreement or arrangement.]
5[196. Interest or dividend or other sums payable to Government, Reserve Bank or certain
corporations.—Notwithstanding anything contained in the foregoing provisions of this Chapter, no
deduction of tax shall be made by any person from any sums payable to—
the Government, or
the Reserve Bank of India, or
a corporation established by or under a Central Act which is, under any law for the time
being in force, exempt from income-tax on its income, or
a Mutual Fund specified under clause
of section 10,
where such sum is payable to it by way of interest or dividend in respect of any securities or shares owned
by it or in which it has full beneficial interest, or any other income accruing or arising to it.]
6[196A. Income in respect of units of non-residents.—
Any person responsible for paying to a
non-resident, not being a company, or to a foreign company, any income in respect of units of a Mutual
Fund specified under clause
of section 10 or of the Unit Trust of India 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 rate of
twenty per cent :
1. Subs. by Act 20 of 2015, s. 49, for sub-section
(w.e.f. 12015). Earlier sub-section
was inserted by
Act 18 of 2008, s. 44 (w.e.f. 12008).