Rules 28(1), 28AA, 28AB, 29, 29B and 29C

Procedure to Avoid Tax Deduction or Getting Tax Deducted at Lower Rate

A. Certificate of tax deduction at lower rate or no tax deduction [Section 197(1)]

1. Payments for which certificate under section 197 can be obtained

According to section 197(1), if an assessee finds that his total income may be below taxable limit or if the tax ultimately paid by him would be less than the tax deducted at source, he can make an application to the concerned assessing officer for providing a certificate of tax deduction at source at lower rate or of no deduction. The assessing officer may grant a certificate to the assessee in respect of the certain payments on satisfaction of the existence of circumstances :

(a) Payment of salaries [Section 192]

(b) Payment of interest on securities [Section 193]

(c) Payment of dividends [Section 194]

(d) Payment of interest other than interest on securities [Section 194A]

(e) Payment to contractors and sub contractors [Section 194C]

(f) Payment of insurance commission [Section 194D]

(g) Payment of commission etc. on sale of lottery tickets [Section 194G]

(h) Payment of commission or brokerage [Section 194H]