Clause 195 - Liability to deduct tax at source - Direct Taxes Code Bill, 2009

CHAPTER - XI COLLECTION AND RECOVERY A.-Deduction at source Liability to deduct tax at source 195. (1) Any person responsible for making specified payment shall, at the time of the payment, deduct income tax therefrom at the appropriate rate (2) The specified payment, referred to in sub-section (1), shall be the payment of the nature specified in Column 2 of- (a) the Third Schedule, if the deductee is a resident; and (b) the Fourth Schedule, if the deductee is a non-resident. (3) The appropriate rate referred to in sub-section (1) shall, in respect of a specified payment, be the rate specified in the corresponding entry in Column 3 of- (a) the Third Schedule, if the deductee is a resident; and (b) the Fourth Schedule, if the deductee is a non-resident. (4) However, the appropriate rate referred to in sub-section (1) shall, in a case where the deductee has failed to furnish his Permanent Account Number to the deductor, be the higher of the following rates:- (a) twenty per cent; and (b) the rate specified in sub-section (3).