Section 194A. Interest other than "Interest on securities"

6[ 194A. Interest other than "Interest on securities". —(1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of interest other than income by way of interest on securities, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force: 7[Provided that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such interest is credited or paid, shall be liable to deduct income-tax under this section.] 8[ Explanation. —For the purposes of this section, where any income by way of interest as aforesaid is credited to any account, whether called "Interest payable account" or "Suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.] 1. Ins. by Act 49 of 1991, s. 51 (w.e.f. 1-10-1991). 2. The words "and super-tax" omitted by Act 10 of 1965 (w.e.f. 1-4-1965). 3. Subs. by Act 20 of 2002, s. 73, for the first and second provisos (w.e.f. 1-6-2002). 4.Subs. by Act 32 of 2003, s. 73, for "one thousand rupees" (w.e.f. 1-8-2002). 5. Ins. by s. 73, ibid . (w.e.f. 1-4-2003). 6. Ins. by Act 20 of 1967, s. 30 (w.e.f. 1-4-1967). 7. Ins. by Act 20 of 2002, s. 74 (w.e.f. 1-6-2002). 8. Ins. by Act 11 of 1987, s. 47 (w.e.f. 1-6-1987). * * * 1* * (3) The provisions of sub-section (1) shall not apply— 2[(i) where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the person referred to in sub-section (1) to the account of, or to, the payee,[3] [does not exceed— (a)[4] [forty thousand] rupees, where the payer is a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution, referred to in section 51 of that Act); (b)[4] [forty thousand] thousand rupees, where the payer is a co-operative society engaged in carrying on the business of banking; (c)[4] [forty thousand] rupees, on any deposit with post office under any scheme framed by the Central Government and notified by it in this behalf; and (d) five thousand rupees in any other case]:] 5[Provided that in respect of the income credited or paid in respect of— (a) time deposits with a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); or (b) time deposits with a co-operative society engaged in carrying on the business of banking; (c) deposits with a public company which is formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India[6] [for residential purposes and which is eligible for deduction under clause (viii) of sub-section (1) of section 36][7] *; 8* the aforesaid amount shall be computed with reference to the income credited or paid by a branch of the banking company or the co-operative society or the public company, as the case may be:] 9[Provided further that the amount referred to in the first proviso shall be computed with reference to the income credited or paid by the banking company or the co-operative society or the public company, as the case may be, where such banking company or the co-operative society or the public company has adopted core banking solutions;] 1. Sub-section (2) omitted by Act 18 of 1992, s. 71 (w.e.f. 1-6-1992). 2. Subs. by Act 25 of 1975, s. 20, for clause (i) (w.e.f. 1-4-1975). 3. Subs. by Act 22 of 2007, s. 53, for "does not exceed five thousand rupees" (w.e.f. 1-6-2007). 4. Subs. by Act 7 of 2019, s. 9, for "ten thousand" (w.e.f. 1-4-2019). 5. Subs. by Act 33 of 1996, s. 49, for the proviso (w.e.f. 1-10-1996). 6. Subs. by Act 10 of 2000, s. 60, for "for residential purposes" (w.e.f. 1-4-2000).