¹⁷[Certificate of no deduction of tax or deduction at lower rates from income other than dividends.

28AA. (1) The Assessing Officer, on an application made by a person ¹⁸[under sub-rule (1) of rule 28, may issue a certificate ^18ain accordance with the provisions of sub-section (1) of section 197] for deduction of tax at source at the rate or rates calculated in the manner specified below :

           (i)  at such average rate of tax as determined by the total tax payable on estimated income, as reduced by the sum of advance tax already paid and tax already deducted at source, as a percentage of the payment referred to in section 197 for which the application under sub-rule (1) ¹⁹[* * *] of rule 28 has been made; or

          (ii)  at the average of the average rates of tax paid by the assessee in the last three years;

whichever is higher.

(2) The certificate shall be valid for the assessment year to be specified in the certificate, unless it is cancelled by him at any time before the expiry of the specified period. An application for a fresh certificate may be made, if required, after the expiry of the period of validity of the earlier certificate.

(3) The certificate shall be valid only for the person named therein.

(4) The certificate shall be issued direct to the person responsible for paying the income under advice to the applicant.

(5) ²⁰[* * *]].