Certificates and Conditions for Non-Deduction, Lower Deduction and Lower Collection of Tax - Rule 209,210,213 (New) / Rule 28, 28AA, 28AB, 29, 29B, 29BA, 37G, 37H (Old)

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....ng receipt of such income or sum without deduction of tax. The application is required to be made in Form No. 126. Rule 209(1), Table Sl. No. 1 - Banking company or insurer A non-domestic banking company or insurer carrying on operations in India through a branch may apply where: • it has been regularly assessed to income-tax in India; • returns have been furnished for the last five tax years for which returns became due; • it is not in default in respect of tax, interest, penalty, fine or any other sum payable under the Act; and • the interest or other sum is receivable by the Indian branch on its own account and not on behalf of the head office, foreign branch or any oth....

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....maintained with a bank in India; or • by remittance of funds in foreign currency, and the acquisition must be in accordance with the provisions of the Foreign Exchange Management Act, 1999 and the rules made thereunder. Thus, Rule 210 operates as a specific condition-based exemption from TDS, rather than as an application procedure for obtaining a certificate. Rule 213(1) - Application in Form No. 128 An application is required to be made in Form No. 128 for obtaining a certificate for: • deduction of income-tax at a lower rate; • no deduction of income-tax under section 395(1); or • collection of income-tax at a lower rate under section 395(3). Rule 213(2) - Exclusi....

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....the applicant and the dividend income must not be includible in another person's total income under sections 96 to 99; or • be held by the applicant on behalf of a registered non-profit organisation and the dividend income must be exempt from tax under Chapter XIX-B of the Act.  Rule 213(6) - Transfer of shares Where the shares covered by the certificate are transferred, the certificate ceases to operate from the date of notice to the company, to the extent of the income relating to the transferred shares. Rule 213(7) - Validity of certificate The certificate remains valid for the period of the tax year specified in the certificate unless cancelled earlier by the Assessing Officer. Rule 213(8) - Certi....