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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section (ii)

PUBLISHED BY AUTHORITY

No. 375] NEW DELHI, THURSDAY, OCTOBER 15, 1970/ASVINA 23, 1892

Separate paring is given to this Part in order that it may be filed as a separate compilation.

CENTRAL BOARD OF DIRECT TAXES

NOTIFICATION

INCOME-TAX

New Delhi, the 14th October 1970

S.O. 3398.—In exercise of the powers conferred by section 295 of the Income- tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1982, namely:—

1. These rules may be called the Income-tax (Third Amendment) Rules, 1970.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), rule 6A shall be renumbered as rule 6AA thereof, and before the rule as so renumbered, the following rule shall be inserted, namely:—

"6A(1) Prescribed authority, services, etc. for agricultural development allow- ance.—For the purposes of clause (a) of sub-section (1) of section 35C, the 'pres- cribed authority' shall be the Secretary, Department of Agriculture, Ministry of Food, Agriculture, Community Development and Cooperation, Government of India, or any other officer of that Department nominated by him in this behalf.

(2) For the purposes of sub-clause (iii) of clause (b) of sub-section (1) of section 35C, the prescribed services and facilities shall be as follows, namely:—

(1) dissemination of Information no, or demonstration of, modern techniques or methods of processing, marketing and storage of seeds;

( 1661)

(il) services or facilities given to seed growers lor. the purposes of storage, transport and Insurance of sevds, .

3. In rule ISA of the principal rules, for t he Table, t b* following Table shall

b" substituted, namely:—

"TABLR

Name of the State or Union

Designation of the authority

SI. No.

Territory

i.

Andaman and Nicobar Islands .

Labour Commissioner, Andaman and Nicobar Ii

lands.

Chief Impictor of Factories Andhra Pradesh, Hyderabad..

2.

AndhraPradish

Rehabilitation Ccmmissicncrj Govtirjntnt of Elfcrr

Bhar

3-

Delhi

Director of Industries, Delhi.

4-

Labour Commissioner, Government of Goa, Damon

GOB, Daman and D iu

5-

and D m.

Gujarat

Industrie* Commissioner, Government of Gujarat.

6.

D rector of Industries, Government of Haryana.

Haryana . . ..

H machalPnd^sh .

D rector of Industries, Himachal Pradesh, Simla.

7- 8.

D'r-ctor of Industries, Government of Jammu end

Jammu&Kashm'r .

9-

Kashm.r.

S e c t a r y, Labour and Social Welfare Department

10.

Kerala

Government of Kerala.

M i i h y a P r i d : sh

R;hsb Citation Commitsionerj Government of Madhyt

t i.

Pradesh.

ia.

Mihirash'ra . . ..

Minipur . . ..

D rector, Relief and Rchab'litation, Chandrapur.

D:puty Commi"s:onfr of Muni pur.

D r:sKor of Industries and Commerce, Government

13- 14.

My"Jr;

Mysore.

Labour Secretary, Government of Negaland.

Nagihnd . . ..

R:hib litation Commissioner- Government of Or'isa.

Or ssa

IJ- 16.

Secretary, Revenue and Development Department

Pond chtrry . . ..

17-

Government of Pond cherry.

Punjab

18.

D r^c'or of la l a i t i e s, Gavemment of Punjab.

C ^ tm 3s:oner of Labour, Government of Tun-l Nadu,

Tam llMidu . . ..

19-

Madras.

D M'.or of Industries, Government of T r p u n.

Tr pura . . ..

1 0.

L i b o jr C on nijsioier, Govennent Of Uttur Pradesh,

Uttarpraiish . I

2 t.

R : f . i j :: R:hJ3 litation Commssioner, West Bangal.'

West Bengal . . ..

2 2.

4. After rule 29A of the principal rules, t he following rule shall be inserted,

name.y:—

"29B. Application for ccrti/icate authorising receipt of interest and other sums

tu'thotu deducation of tax —(1) Any person entitled to receive any interest, or

other sum, on which income-tax has to be deducted under sub-u"ctlon (1) o*

section 195 may. if he fulfils the conditions gpecifled in sub-rule ^2), make an

application for the grant of a certificate under sup-section (3) of Mctlon 193

authorlsinj: him to receive without deduction of tax under sub-section (1) of that

section any such Income as is specified herelnb"low, namely—

(1) where the person concerned Is a banking company which is neither an

Indian rompanv nor a company which has made the prescribed

arrangements for the declaration and payment of dividends within

India, and which carries on operations In India through a branch,

any income by way of interest, not being 'Int"r"Bt on securities', or

any other sum, not being dividends;

(11) In the case of any other person who carries on a business or profession in India through a brancn, any sum, not being interest or dividends.

In so far as such interest or other sum 1" receivable by sucn branch on it* owu account and not on behaU of its head office or any branch situated outside India, or any ouier person.

(2) The conditions referred to in sub-rule (1) are the following namely:—

(I) the person concerned has been regularly assessed to income-tax In Irdia uiiu nad lurnianed the returns 01 income for all assessingL years lor which sucn returns became due on or bexore the date ou which the application under sub-rule (1) is made;

(II) bo is not in default or deemed to be In default in respect of any tax

(including advance tax and tax payable under section 140A), interest, penalty, tine, or any other sum payab-e under Lhe Act;

till) be haa not been subjected to penalty under clause (iii) of sub-ttctloa

(1) of section 271;

(iv) where the person concerned is not a banking company referred to In

clause (I) of sub-rule (1)—

(a) he has been carrying on business or profession In India continuously for a period of not less than five years immediately preceding th" date of the application, and

(b) the value of the fixed assets in India of such business or profession as shown in his books for the previous year which ended immedi- ately before the date of the application or, where the accounts In respect ot iiuch previous year have not been made up before the said date, the previous year immediately preceding that year, exceeds fifty lakhs of rupees.

(3) The app.ication under sub-rule (1) by a banking company shall be in form No. 13C and by any other person [referred to in clause (ii) of sub-iule (1)] shall be In form No. 1BD.

(4) The Income-tax Officer may give a certificate authorising the person con- cerned to receive the Income specified In clause (i) or clause ul) of sub-rule (1), without deduction of tax under sub-section (1) of section 195, if he is satisfied that all the conditions laid down in sub-rule (2) are fulfilled and the Issue ot any such certificate will not be prejudicial to the Interests of revenue.

(3) The certificate shall be valid for the financial year specified therein, unless It la cancelled by the Income-tax Officer at any time before the expiry of the said financial year. An application for a fresh certificate may be made, if required, after the expiry of the period 01 validity of the earlier certificate, or within thre" months before the expiry thereof.

"5) The certificate shall be in Form No. 15E.". 5. In Appendix II to the principal rules, after Form No. 15B, the following forms shall be Inserted, namely:—

"FORM NO. 15C

[Set Rule J9B]

Appl;c"tion by • bank'ng compiny for a c;rTiflcatc under section 195 (3) of the Income tax Act, 1561 for receipt of interest and other sums without deduction of tax.

To

The Income-tax Officer)

Sir,

I>

being the

principal Officer of

(Name of the banking company)

hereby declare:—

(a) th"t

is a bankng company which is neither an Indian company nT a companv wh:ch has made the prescribed •rrans^mtnt* for the declaration and payment of d vidends within India and which is opfratjrir In India through * branch (es) at

t "

(>) that the head-office of th e said company it situated at

(Name of the place ind country, )

00 that the said company is entitled to receive interest (orhcrthan 'Interest en securities') and o:h-r sums not bsing dividends, chargeable under the provisions of the Inccme tax Act 1961 durng the financial year 19

19

(4) thit the company fulfil* all the conditions laid down In^rule 29B of the Income-tax Rules, 1963.

Ijthtrefore, request that a certificate may be issued authorising the said company to recei interestvhjr thin 'Interest on securities' and other sums not being dividends, without deduction of tax under sub-section (1) of section 195 of the Income-tax Act, 1961 during the financial yea 19

19

1 hereby declare that what it stated in this application i" correct.

Date

Signature Address

FORM MO. 15D

[Se$ Rule 29B}

Application by a person other than a banking company for a certificate under section 195 ofthe Income-tax Act, 1961 forreccipt of sumsotherthaninterestand dividends without dedu ion4of tax.

To

The Income-tax Officer,

Sir,

I being the principal officer of/

W"

(Name of the pfraon, firm or company entitled to receive sums other than interest and divid- ends)

do hereby declare—

(a) that 1/

am/is a (Name of the firm, company, etc.)

non-rraident assessee (not being a banking company) carrying on business/profession in India through a branch (es) by name (s) having office (s) at..,. * • . . . . . . .. j

(6) that my head office/the head office of

(Name of the firm, company, etc.) is situated at

;

(Name of the place and country)

(c) that I

am/is entitled (Name of the firm, company, etc.)

to receive incline (other than dividends and interest) chargeable under the provisions of the Income-tax Actj 1961 during the financial year 19 19

(i) that 1/

fulfil („) all the (Name of the firm company, etc.)

conditions laid down In rule 29B of the Income-tax Rules, 1962.

I, therefore, request that a certificate may be issued authorising me/

to receive income other than interest (Name of the ftrmj company, etc.)

or dividends without deduction of tax under sub-section (1) of section 195 of the Income-tax Act, 1961 during the financial year 19 19

I hereby declare that what is stated in this application is correct.

Date

Signature Addrew

FORM NO. 13E

[See Rule 29B]

Certiflcat* under Bastion 195C3) of the Income-tax ACj 1961 authorising receipt of interest and other sums without dcduct;on of tax.

Income-tax Office Date Certificate No

To

Sir,

I hereby authorise you to receive through your branch (es) situated at

/all your branches situated in Indiu, the following sums without deduction of income-tax undo iub-section (1) of section 195 of the Income-tax Act, 1961 :—

• (a) interest not being 'Interest on securities'. • (*) any other sum, not being dividend?. • (<0 any sums, not being interest or dividends.

This certificate covers only such sums as are receivable by the aforesaid branch (es) e itj/their own account and not those which are receivable on behalf of your head office Or any othc" branch outside India or any other person.

This certificates shall remain in force for the financial ycar 19.. . .19 .. unless it le cancelled by m: under intimation to you before the expiry of the said financial year.

(Seal)

Income-tax Officer.

•Delete the inappropriate words."

[No. 161/F.No. 131(22)/70-TPL.] R. R. KHOSLA, Secy.

I'BINFED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESd, MINTO ROAD

NEV DELHI AND PUBLISHED BY THU MANAGER OF PUBLICATIONS, DELHI, 1970