# The Finance Act, 1987, Section 49: Amendment of section 195

- Act: The Finance Act, 1987 (Act 11 of 1987)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-1987/section/49/

## Text

Amendment of section 195 49. In section 195 of the Income-tax Act, with effect from the 1st day of June, 1987,— (a) for sub-section (2), the following sub-section shall be substituted, namely:— '(1)Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest (not being interest on securities) or any other sum chargeable Under the provisions of this Act (not being income chargeable under the head "Salaries" or dividends) shall at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode whichever is earlier, deduct income-tax thereon at the rates in force. Explanation—For the purposes of this section where any interest or other sum as aforesaid is credited to any account, whether called "Interest payable account" or "Suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.'; (b) in sub-section (2),— (i)for the words "by general or special order", the words "in the prescribed manner" shall be substituted; (ii)the following proviso shall be inserted at the end, namely:— "Provided that this sub-section shall not apply to any payment to a foreign company by way of interest referred to in clause (v), or royalty referred to in clause (vi), or fees for technical services referred to in clause (vii), of sub-section (1) of section 9.". [Finance Act, 1987] © Copyright. Taxmann Publications Pvt. Ltd.

---
Published by eCourtsIndia together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957.