e following sums shall be deemed as income received for the purposes of computing the income of an assessee— (a) sums deducted under this Chapter; and (b) income-tax paid outside India by way of deduction in respect of which an assessee is allowed a credit against the tax payable under this Act, except tax paid under section 392(2)(a) and tax deducted as per section 393(3) (Table: Sl. No. 5). Compliance and reporting. 397. (1)(a) Every person deducting or collecting tax shall apply for allotment of a tax deduction and collection account number to the Assessing Officer within such time as may be prescribed, if that person has not already been allotted such number; (b) swhere a tax deduction and collection account number has been allotted to a person, such person shall quote such number in all challans, statements, certificates referred to in this Chapter, and in all documents pertaining to such transactions as may be prescribed in the interests of revenue; (c) the provisions of clause (a) shall not apply–– (i) to a person who is required to deduct tax under provisions of section 393(1) [Table: Sl. No. 2(i), 3(i) and 6(ii)]; (ii) to a person referred to in section 393(4) [Table: Sl. No. 12.C(a)]; and (iii) a person notified in this regard by the Central Government.
(2)(a) Irrespective of anything contained in any other provision of this Act, every person, entitled to receive any amount on which tax is deductible or, paying any amount on which tax is collectible, shall furnish his valid Permanent Account Number to the person responsible for deducting or collecting tax; (b) in case of failure to comply with provisions of clause (a)— (i) tax shall be deducted at the higher of the following rates:— (A) at the rate specified in the relevant provision of this Act; or (B) at the rate or rates in force; or (C) at the rate of 5% where tax is required to be deducted under section 393(1) [Table: Sl. No. 8(ii) or 8(v)]; or 20% in any other case; (ii) tax shall be collected at the higher of the following rates, not exceeding 20%–– (A) at twice the rate specified in the relevant provision of this Act; or (B) at the rate of 5%; (c) the provisions of clause (b)(i) shall not apply to a non-resident, not being a company or a foreign company, in respect of— (i) payment of interest on long-term bonds as specified in section 393(2) (Table: Sl. Nos. 2, 3 and 4); and (ii) any other payment subject to such conditions, as may be prescribed; (d) the provisions of clause (b)(ii) shall not apply to a non-resident who does not have permanent establishment in India (which includes a fixed place of business through which the business of the enterprise is wholly or partly carried on); (e) in respect of rent specified in section 393(1) [Table: Sl. No. 2(i)], if the tax is required to be deducted as per clause (b)(i), then such deduction shall not exceed the amount of rent payable for the last month of the tax year or the last month of the tenancy, as the case may be; (f) if a person does not furnish his valid Permanent Account Number in— (i) any declaration under section 393(6) or 394(2), then such declaration becomes invalid; (ii) any application made under provisions of section 395(1) or (3), then no certificate under such provisions shall be granted; (g) if any declaration becomes invalid under clause (f)(i), then the deductor or collector shall deduct or collect tax as per the provisions of clause (b)(i) or (ii) as the case may be; (h) the deductee or collectee shall furnish his valid Permanent Account Number to the deductor or collector, as the case may be, and the same shall be indicated in all bills, vouchers, correspondence and other documents which are sent to each other. (3)(a) Every person responsible for deduction or collection of tax or employer referred to in section 392(2)(a) shall pay the amount so deducted or collected or determined as per section 392(2)(b) to the credit of the Central