Clause 197 - Certificate for no deduction of tax - Direct Taxes Code Bill, 2009

Certificate for no deduction of tax 197. (1) The deductee may make an application, in the prescribed form and manner, to the Assessing Officer seeking a certificate for no deduction of income-tax from payments to be received by him. (2) The deductor may make an application, in the prescribed form and manner, to the Assessing Officer seeking a certificate for no deduction of income-tax from payments to be made by him to a non-resident deductee. (3) The Assessing Officer shall give to the deductee or the deductor, as the case may be, such certificate as may be appropriate, if he is satisfied that the total income of the deductee justifies no deduction of income-tax. (4) The deductor shall not deduct any tax until- (a) the certificate issued under sub-section (3) is cancelled by the Assessing Officer; or (b) the expiry of the validity of the certificate. (5) The Board may, having regard to the convenience of the deductee and the interests of revenue, prescribe the cases in which, and the circumstances under which, an application may be made for the grant of the certificate and the conditions subject to which such certificate may be granted and providing for all other matters connected therewith.