Section 197A - No deduction to be made in certain cases - Income-tax Act, 1961

1 [No deduction to be made in certain cases. 197A. (1) Notwithstanding anything contained in 2 [***] section 194 3 [***] 4 [or section 194EE], no deduction of tax shall be made under any of the said sections in the case of an individual, who is resident in India, if such individual furnishes to the person responsible for paying any income of the nature referred to in 5 [***] section 194 6 [ 7 [***] or, as the case may be, section 194EE], a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that 8 [the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil .] 9 [(1A) Notwithstanding anything contained in 26 [section 192A or section 193 or section 194A 32 [ or section 194D ] or section 194DA] 30 [ or section 194-I ] or section 194K, no deduction of tax shall be made under 11 [any] of the said sections in the case of a person (not being a company or a firm), if such person furnishes to the person responsible for paying any income of the nature referred to in 27 [section 192A or section 193 or section 194A 32 [ or section 194D ] or section 194DA] 30 [ or section 194-I ] or section 194K, as the case may be, a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil. ] 13 [(1B) The provisions of this section shall not apply where the amount of any income of the nature referred to in sub-section (1) or sub-section (1A), as the case may be, or the aggregate of the amounts of such incomes credited or paid or likely to be credited or paid during the previous year in which such income is to be included exceeds the maximum amount which is not chargeable to income-tax.] 14 [(1C) Notwithstanding anything contained in 28 [section 192A or section 193 or section 194 or section 194A 32 [ or section 194D ] or section 194DA] or section 194EE 31 [ or section 194-I ] or section 194K or sub-section (1B) of this section, no deduction of tax shall be made in the case of an individual resident in India, who is of the age of 23 [ sixty years ] or more at any time during the previous year 15 [ *** ] , if such individual furnishes to the person responsible for paying any income of the nature referred to in 29 [section 192A or section 193 or section 194 or section 194A 32 [ or section 194D ] or section 194DA] or section 194EE 31 [ or section 194-I ] or section 194K, as the case may be, a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil .] 16 [(1D) Notwithstanding anything contained in this section, no deduction of tax shall be made by the Offshore Banking Unit from the interest paid- ( a ) on deposit made on or after the 1st day of April, 2005, by a non-resident or a person not ordinarily resident in India; or ( b ) on borrowing, on or after the 1st day of April, 2005, from a non-resident or a person not ordinarily resident in India. Explanation.- For the purposes of this sub-section Offshore Banking Unit shall have the same meaning as assigned to it in clause ( u ) of section 2 of the Special Economic Zones Act, 2005.] 22 [(1E) Notwithstanding anything contained in this Chapter, no deduction of tax shall be made from any payment to any person for, or on behalf of, the New Pension System Trust referred to in clause (44) of section 10.] 33 [ (1F) Notwithstanding anything contained in this Chapter, no deduction of tax shall be made, or deduction of tax shall be made at such lower rate, from such payment to such person or class of persons, including institution, association or body or class of institutions, associations or bodies, as may be notified by the Central Government in the Official Gazette, in this behalf. ] (2) The person responsible for paying any income of the nature referred to in sub-section (1) 17 [or sub-section (1A)] 18 [or sub-section (1C)] shall deliver or cause to be delivered to the 19 [ 25 [Principal Chief Commissioner or] Chief Commissioner or 25 [Principal Commissioner or] Commissioner] one copy of the declaration referred to in sub-section (1) 20 [or sub-section (1A)] 21 [or sub-section (1C)] on or before the seventh day of the month next following the month in which the declaration is furnished to him.] ----------------------- Notes :- 1. Inserted by the Finance Act, 1982, w.e.f. 1-6-1982. 2. Words section 193 or omitted by the Finance Act, 1999, w.e.f. 1-6-1999. 3. Words or section 194A omitted by the Finance Act, 1992, w.e.f. 1-6-1992. 4. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991. 5. Words or section 193 or omitted by the Finance Act, 1999, w.e.f. 1-6-1999. 6. Substituted for or, as the case may be, section 194A by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991. 7. Words or section 194A omitted by the Finance Act, 1992, w.e.f. 1-6-1992. 8. Substituted for his estimated total income of the previous year in which such income is to be included in computing his total income will be less than the minimum liable to income-tax by the Finance Act, 1990, w.e.f. 1-4-1990. 9. Substituted by the Finance Act, 1995, w.e.f. 1-7-1995. Prior to its substitution, sub-section (1A), as inserted by the Finance Act, 1992, w.e.f. 1-6-1992, read as under : (1A) Notwithstanding anything contained in section 194A, no deduction of tax shall be made under that section in the case of a person (not being a company or a firm), if such person furnishes to the person responsible for paying any income of the nature referred to in that section, a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil . 10. Inserted by the Finance Act, 1999, w.e.f. 1-6-1999. 11. Substituted for either by the Finance Act, 1999, w.e.f. 1-6-1999. 12. Inserted by the Finance Act, 1999, w.e.f. 1-6-1999. 13. Inserted by the Finance Act, 2002, w.e.f. 1-6-2002. 14. Inserted by the Finance Act, 2003, w.e.f. 1-6-2003. 15. Words and is entitled to a deduction from the amount of income-tax on his total income referred to in section 88B omitted by the Finance Act, 2007, w.r.e.f. 1-4-2006. 16. Inserted by the Special Economic Zones Act, 2005, w.e.f. 10-2-2006. 17. Inserted by the Finance Act, 1992, w.e.f. 1-6-1992. 18. Inserted by the Finance Act, 2003, w.e.f. 1-6-2003. 19. Substituted for Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 20. Inserted by the Finance Act, 1992, w.e.f. 1-6-1992. 21. Inserted by the Finance Act, 2003, w.e.f. 1-6-2003. 22. Inserted vide Finance (No.2) Act, 2009, w.e.f. 1-4-2009 23. Substituted vide Finance Act, 2012, w.e.f. 01-07-2012, before it was read as:- sixty-five years 24. Inserted vide Finance Act, 2012, w.e.f. 01-07-2012, 25 . Inserted vide THE FINANCE (No. 2) ACT, 2014 w.e.f. 1st day of June, 2013 26. Substituted vide THE FINANCE ACT, 2015 w.e.f. 1st day of June, 2015, before it was read as, 10 [section 193 or] section 194A 27.Substituted vide THE FINANCE ACT, 2015 w.e.f. 1st day of June, 2015, before it was read as, 12 [section 193 or] section 194A 28. Substituted vide THE FINANCE ACT, 2015 w.e.f. 1st day of June, 2015, before it was read as, section 193 or section 194 or section 194A 29. Substituted vide THE FINANCE ACT, 2015 w.e.f. 1st day of June, 2015, before it was read as, section 193 or section 194 or section 194A 30. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of June, 2016. 31. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of June, 2016. 32. Inserted vide THE FINANCE ACT, 2017 w.e.f. 1st day of June, 2017. 33. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-04-2020 before it was read as 24 [ (1F) Notwithstanding anything contained in this Chapter, no deduction of tax shall be made from such specified payment to such institution, association or body or class of institutions, associations or bodies as may be notified by the Central Government in the Official Gazette, in this behalf. ]