Section 197A of ITA, 1961 : Section 197A: No Deduction To Be Made In Certain Cases

Explanation using Example

Imagine Mr. Sharma, a retired individual aged 65, who receives interest income from a fixed deposit in a bank. The interest income is the only source of income for Mr. Sharma, and it is below the taxable limit for the financial year. According to Section 197A(1C) of the Income-tax Act, 1961, Mr. Sharma can submit a declaration in the prescribed form to the bank stating that his total income for the year will not be taxable. Consequently, the bank will not deduct tax at source (TDS) on the interest income credited to Mr. Sharma's account.