Certificate to be provided on bank profits
The Finance Act has approved that the bank will deduct tax at the rate of 10% on the payment of profit up to Rs. 500,000/- after obtaining a certificate from the recipient that during the tax year the profit on debt would remain less than Rs. 500,000/-.
For this purpose, the Finance Act has amended the Division IA, in the proviso, after the word “where”, the expression “the taxpayer furnishes a certificate to the payer of profit that during the tax year” shall be inserted.