Section 209 — Application by payee for certificate authorising receipt of interest and other sums without deduction of tax

(1) Any person, as mentioned in column B of the following Table, entitled to receive any interest or any other sum of the nature specified in section393(2) [Table: Sl. No. 17], on fulfilment of the conditions specified in column C thereof, may make an application in Form No. 126, for grant of a certificateunder section 395(1) authorising him to receive without deduction of tax, any such income or sum as specified in column D thereof:
TABLE
Sl.No. Person Conditions Nature of income or sum
A B C D
1. Banking company or an insurer (asdefined in section 2(9)(d) of InsuranceAct, 1938 (4 of 1938)), which is not adomestic company, and which carrieson operations in India through abranch.
(a) The person concerned has been regularly assessed to income-tax in India and has furnished the returns of income for lastfive tax years for which such returns became due on or beforethe date on which the application under this rule is made;(b) he is not in default or deemed to be in default in respect of anytax (including advance tax and tax payable under section 266),interest, penalty, fine, or any other sum payable under the Act;and(c) the interest or other sum is receivable by the branches on theirown account and not on behalf of its head office or any branchsituated outside India, or any other person.
Any income by way of interest, notbeing interest on securities (other thaninterest payable on securities referredto in section 393(4) [Table: Sl. No. 6]),or any other sum, not being dividends.
2. Any person other than the personreferred to in Sl. No. 1 who carries on abusiness or profession in India througha branch.
(a) The conditions specified in Sl. No. 1;(b) he has been carrying on business or profession in Indiacontinuously for a period of not less than five yearsimmediately preceding the date of the application; and(c) the value of the fixed assets in India of such business orprofession as shown in his books of account for the tax year,which ended immediately before the date of the application, orwhere the accounts in respect of such tax year have not beenmade up before the said date, the tax year immediatelypreceding that year, exceeds fifty lakhs rupees.
Any sum not being interest ordividends.
(2) The certificate granted by the Assessing Officer under section 395(1) shall be valid for the tax year specified therein, unless it is cancelled by him at anytime before the expiry of the said tax year.
(3) An application for a fresh certificate may be made, if required, after the expiry of validity of the earlier certificate, or within three months before the expirythereof.
Condition for no deduction of tax at source from income in respect of units of non-residents referred to in section 393(2) [Table: Sl. No. 10] read withsection 393(4) [Table: Sl. No. 15].
210. Income payable in respect of units of the Unit Trust of India to a non-resident Indian or a non-resident Hindu undivided family, shall not be subject todeduction of tax at source, where such units have been acquired from the Unit Trust of India out of the funds in a non-resident (External) account, maintainedwith any bank in India or by remittance of funds in foreign currency, in accordance, in either case, with the provisions of the Foreign Exchange ManagementAct, 1999 (42 of 1999), and the rules made thereunder.