No deduction of tax in certain cases
200. No tax shall be deducted from the following:-
(a) any payment, other than salary, made by an individual or a Hindu undivided family if the individual or the Hindu undivided family is not liable to audit of accounts under section 84 during the financial year immediately preceeding the financial year in which the payment is made;
(b) any interest payable on any security of the Central Government or a State Government;
(c) any interest on debenture payable to an individual, if -
(i) the debentures are issued by a widely held company;
(ii) the debentures are listed in a recognised sock exchange in India; and
(iii) the aggregate amount payable during the financial year does not exceed two thousand five hundred rupees;
(d) any interest on time deposits payable, if-
(i) the time deposits are made with a banking company or a co-operative bank or a housing-finance public company; and
(ii) the aggregate amount payable by a branch of the bank or company during the financial year does not exceed ten thousand rupees;
(e) any other interest payable if the aggregate amount of the payments during the financial year does not exceed five thousand rupees;
(f) any interest payable to,-
(i) any banking company;
(ii) any co-operative bank;
(iii) any financial corporation established by or under a Central or State or Provincial Act;
(iv) any insurer;
(v) any mutual fund; or
(vi) any institution, association or body, or class of institutions, associations or bodies, which the Central Government may, for reasons to be recorded in writing, notify in this behalf in the Official Gazette;
(g) any interest payable by a firm to a partner of the firm;
(h) any interest payable in respect of deposits under any scheme framed by the Central Government and notified by it in this behalf in the Official Gazette;
(i) any interest payable in respect of deposits (other than time deposits) with a banking company or a co-operative bank;
(j) any interest payable by the Central Government under any provisions of this Code or the Income-tax Act, 1961;
(k) any interest payable on the amount of compensation awarded by the Motor Accidents Claims Tribunal, if the aggregate of the amounts of such interest paid, or credited, during the financial year does not exceed one hundred thousand rupees;
(l) any amount payable on maturity, or redemption, of a zero coupon bond;
(m) any payment for carriage of goods by road transport if the payee furnishes his Permanent Account Number to the payer;
(n) any payment to a contractor in respect of works contract, service contract, advertising, broadcasting and telecasting, supply of labour for carrying out any works, or service, contract or carriage of goods or passengers by any mode of transport, other than by railways, if -
(i) the amount of any payment during the financial year does not exceed twenty thousand rupees; and
(ii) the aggregate amount of the payments during the financial year does not exceed fifty thousand rupees;
(o) any payment of commission or brokerage, if the aggregate amount of the payments during the financial year does not exceed five thousand rupees;
(p) any payment of rent, if the aggregate amount of the payments during the financial year does not exceed one hundred and twenty thousand rupees;
(q) any payment of compensation on acquisition of immovable property, if the aggregate amount of the payments during the financial year does not exceed one hundred thousand rupees.
