43. Insertion of new section 124B in the principal enactment

The following new section is hereby inserted immediately after section 124A of the principal enactment and shall have effect as section 124B of that enactment :—

124B. (1) Any person other than an individual from whose interest income tax is deductible by a bank, financial institution, or a company which issues any corporate debt security in accordance with the provisions of paragraph (a) of subsection (1) of section 122A or subsection (1) of section 122B, as the case may be, where such interest income will form part of the assessable income of such person for any year of assessment, may, if the amount of income tax payable by such person for such year of assessment is less than the income tax

“Issue of directions where deductions are made from interest income under section 122A or 122B.

Inland Revenue (Amendment)

deductible during that year of assessment under section 122A and 122B, make an application to the Commissioner-General in such form and containing such particulars as may be specified by the Commissioner-General, requesting that a direction be issued to the bank or financial institution or any company which issues corporate debt security subject to the deduction of income tax, to make necessary adjustments in the deduction of income tax during that year of assessment :

Provided however if such person has obtained a direction under any other section of this Act, such direction shall also be taken into consideration in making a direction under this subsection.

Notwithstanding the provisions of subsection (1) of section 124A or of this section, any individual from whose interest income income tax is deductible by a bank or financial institution in accordance with the provisions of paragraph (a) of subsection (1) of section 122A, during any period commencing on or after January 1, 2004, and where —

such interest income is the sole income or the major source of income of such individual, where more than ninety per centum of his income consists of such interest income for that year of assessment ;

the amount of the interest income receivable on all deposits maintained by such individual either singly or jointly in all banks and financial institutions, does not exceed rupees twenty five thousand in a month or rupees three hundred thousand in any twelve months period; and

the total income of such person for that year of assessment including any income exempt from income tax does not exceed rupees three hundred thousand for that year of assessment, may make an application to the relevant bank or financial institution where such deposit is held, requesting that no income tax be deducted from the interest payable on the deposits maintained by him as provided in paragraph (a) of subsection (1) of section 122A, pending verification of facts mentioned in such application by the relevant authority. The application shall contain the following particulars—

full name and address of the deposits holder and the National Identity Card number or Passport number with the date and place issue;

name of the bank or financial institution with which deposits are held;

reference number of all deposits held in such bank or financial institutions, and the interest payable on each deposit and date payable;

any relevant facts in relation to the quantum of total interest receivable on deposits, and whether such income is the sole income or major source of income of such individual as referred to in paragraph (a) above, and that the total income for such year of assessment does not exceed rupees three hundred thousand, including any income exempt from tax; and

a declaration certifying the correctness of the above details.

(a) On receipt of an application containing all particulars as mentioned in subsection (2) and being satisfied with the identity of such applicant, the Chief Executive

The Chief Executive Officer or any other designated officer not below the rank of a manager of such bank or financial institution, shall submit the originals of all such applications received and accepted with the necessary endorsement, to the relevant authority or any other officer authorized by the relevant authority, retaining a copy of such application with such bank or financial institution.

Any individual who has furnished incorrect information to a bank or financial institution and has obtained the relief of non payment of income tax under this section, shall be liable to pay such tax due on interest income as provided in section 122A, with hundred per centum penalty thereon, and such tax and