Beneficial owner exemption: tax may be deducted according to an abatement or exemption certificate presented by the beneficial owner. The 1966 instructions requiring deduction of tax on interest at the rates applicable to the registered banking company do not bar recognition of abatement or exemption certificates issued under section 197(1) for beneficial owners; if the Income-tax Officer is satisfied that an applicant is the beneficial owner and the bank is only the nominal holder, he may grant a certificate, and the Public Debt Office should deduct tax in accordance with that certificate.