CA Certificate u/s 281

You are correct. A CA certificate under Section 281 of the Income Tax Act, 1961, is typically issued by the Assessing Officer (AO) of the Income Tax Department, not by a Chartered Accountant (CA). Section 281 of the IT Act states that the AO may issue a certificate to a person (in this case, the borrower) specifying the amount of tax payable by them. This certificate is usually required by banks or financial institutions to ensure that the borrower has paid their tax dues. In this scenario, the lending bank is incorrectly asking the borrower to provide a CA certificate under Section 281. Instead, the borrower should request the AO to issue the certificate, which can then be submitted to the bank. To resolve this, the borrower can: 1. Contact the AO and request the certificate. 2. Explain the situation to the bank and provide evidence of the AO's certificate.