Section 197 - Certificate for deduction at lower rate - Income-tax Act, 1961

Certificate for deduction at lower rate. 197. (1) 1 [Subject to rules made under sub-section (2A), 2 [where, in the case of any income of any person 3 [or sum payable to any person], income-tax is required to be deducted at the time of credit or, as the case may be, at the time of payment at the rates in force under the provisions of sections 192, 193, 4 [194,] 194A, 5 [194C,] 194D, 6 [194G] 7 [, 194H] 8 [, 194-I] 9 [, 194J] 10 [, 194K] 11 [***] 12 [, 194LA] 24 [ 194LBA, ] 21 [ 194LBB, 22 [ 194LBC, 23 [ 194M, 25 [ 194-O, 194Q ]]] ] and 195, the Assessing Officer is satisfied] that the total income 13 [***] of the recipient justifies the deduction of income-tax 14 [***] at any lower rates or no deduction of income-tax 15 [***], as the case may be, the 16 [Assessing] Officer shall, on an application made by the assessee in this behalf, give to him such certificate as may be appropriate. (2) Where any such certificate is given, the person responsible for paying the income shall, until such certificate is cancelled by the 17 [Assessing] Officer, deduct income-tax 18 [***] at the rates specified in such certificate or deduct no tax, as the case may be. 19 [(2A) 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 (1) and the conditions subject to which such certificate may be granted and providing for all other matters connected therewith.] (3) 20 [***] ------------------------- Notes :- 1. Substituted for Where, in the case of any income of any person other than a company by the Finance Act, 1987, w.e.f. 1-6-1987. 2. Substituted by the Finance Act, 1992, w.e.f. 1-6-1992. Earlier, amendments were made by the Finance Act, 1965, w.e.f. 1-4-1965, Finance (No. 2) Act, 1967, w.e.f. 1-4-1967, Finance Act, 1972, w.e.f. 1-4-1972, Finance Act, 1973, w.e.f. 1-4-1973, Finance Act, 1978, w.e.f. 1-4-1978, Finance Act, 1986, w.e.f. 1-4-1987 and Direct Tax Laws (Amdt.) Act, 1987, w.e.f. 1-4-1988. 3. Inserted by the Finance Act, 2003, w.e.f. 1-6-2003. 4. Inserted by the Finance Act, 1993, w.e.f. 1-6-1993. 5. Inserted by the Finance Act, 2003, w.e.f. 1-6-2003. 6. Inserted by the Finance Act, 2003, w.e.f. 1-6-2003. 7. Inserted by the Finance Act, 2001, w.e.f. 1-6-2001. 8. Inserted by the Finance Act, 1994, w.e.f. 1-6-1994. 9. Inserted by the Finance Act, 2003, w.e.f. 1-6-2003. 10. Inserted by the Finance Act, 1995, w.e.f. 1-7-1995. 11 . , 194L omitted by the Finance Act, 2003, w.e.f. 1-6-2003. Earlier it was inserted by the Finance Act, 1999, w.e.f. 1-6-1999. 12. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. 13. Words or the total world income omitted by the Finance Act, 1965, w.e.f. 1-4-1965. 14. Words or super-tax omitted by the Finance Act, 1965, w.e.f. 1-4-1965. 15. Words or super-tax omitted by the Finance Act, 1965, w.e.f. 1-4-1965. 16. Substituted for Income-tax by the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1988. 17. Substituted for Income-tax by the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1988. 18. Words and super-tax omitted by the Finance Act, 1965, w.e.f. 1-4-1965. 19. Inserted by the Finance Act, 1987, w.e.f. 1-6-1987. 20. Sub-section (3) omitted by the Finance Act, 1986, w.e.f. 1-4-1987. Prior to its omission, sub-section (3) was substituted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968. 21. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of June, 2016. 22. Substituted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-09-2019 before it was read as 194LBC 23. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-04-2020 before it was read as 194M 24. Inserted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 25.Substituted vide Section 65 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024 before it was read as, 194-O