Tds on bank interest for sec10(26) entities

AJAY KUMAR KAR (FCA) (21 Points)

28 June 2017  
Banks usually seek Certificate u/s 197 of Income Tax Act for non deduction of Income Tax at source on Bank Interest. Whether an Entity which is exempted from Income Tax under u/s 10(26) will have to apply to I Tax Deptt(TDS wing) to obtain such Sec 197 Certificate to claim non deduction of Income Tax at source from its earnings from bank Interest.It is SBI which is seeking such Sec 197 Certificate as their system requires such Certificate from the depositor for non deduction of TDS on Bank Interest. If it is required, then please suggest how the application in Form No. 13 is to be made and to whom?