Section 195. Other sums

195. Other sums. —[3] [ (1) Any person responsible for paying to a non-resident, not being a company, or to a foreign company,[4] [any interest (not being interest referred to in section 194LB or section 194LC)][5] [or section 194LD][6] * or any other sum chargeable under the provisions of this Act (not being income chargeable under the head "Salaries"[7] *) 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 the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force: 8[Provided that in the case of interest payable by the Government or a public sector bank within the meaning of clause (23D) of section 10 or a public financial institution within the meaning of that clause, deduction of tax shall be made only at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode:] 1. Ins. by Act 17 of 2013, s. 47 (w.e.f. 1-6-2013). 2. Subs. by Act 7 of 2017, s. 69, for "1st day of July, 2017" (w.e.f. 1-4-2018). 3. Subs. by Act 11 of 1987, s. 49, for sub-section (1) (w.e.f. 1-6-1987). 4. Subs. by Act 23 of 2012, s. 77, for "any interest" (w.e.f. 1-4-2012). 5. Ins. by Act 17 of 2013, s. 48 (w.e.f. 1-6-2013). 6. The words "(not being interest on securities)" omitted by Act 32 of 2003, s. 80 (w.e.f. 1-6-2003). 7. The words "or dividends" omitted by Act 49 of 1991, s. 56 (w.e.f. 1-10-1991). 8. Ins. by Act 36 of 1989, s. 23 (w.e.f. 1-6-1987). 1[Provided further that no such deduction shall be made in respect of any dividends referred to in section 115-O.] Explanation[2] [ 1 ].—For the purposes of this section, where any interest or other sum 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.] 3[ Explanation 2. —For the removal of doubts, it is hereby clarified that the obligation to comply with sub-section (1) and to make deduction thereunder applies and shall be deemed to have always applied and extends and shall be deemed to have always extended to all persons, resident or non-resident, whether or not the non-resident person has— (i) a residence or place of business or business connection in India; or - (ii) any other presence in any manner whatsoever in India.] (2) Where the person responsible for paying any such sum chargeable under this Act ([4] [other than salary]) to a non-resident considers that the whole of such sum would not be income chargeable in the case of the recipient, he may make an application to the[5] [Assessing Officer] to determine,[6] [by general or special order], the appropriate proportion of such sum so chargeable, and upon such determination, tax shall be deducted under sub-section (1) only on that proportion of the sum which is so chargeable. 7* * * * * 8[(3) Subject to rules made under sub-section (5), any person entitled to receive any interest or other sum on which income-tax has to be deducted under sub-section (1) may make an application in the prescribed form to the[5] [Assessing Officer] for the grant of a certificate authorising him to receive such interest or other sum without deduction of tax under that sub-section, and where any such certificate is granted, every person responsible for paying such interest or other sum to the person to whom such certificate is granted shall, so long as the certificate is in force, make payment of such interest or other sum without deducting tax thereon under sub-section (1). (4) A certificate granted under sub-section (3) shall remain in force till the expiry of the period specified therein or, if it is cancelled by the[5] [Assessing Officer] before the expiry of such period, till such cancellation. 1. Ins. by Act 32 of 2003, s. 80 (w.e.f. 1-4-2003). Earlier the proviso was omitted by Act 20 of 2002, s. 80 (w.e.f. 1-6-2002) which was inserted by Act 26 of 1997, s. 49 (w.e.f. 1-6-1997).