No tax is to be deducted under this section in a case where the amount or the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year to the account of, or to, the payee, does not exceed Rs. 5,000 in a financial year.

Application for deduction of tax not to be deducted at all or at a lower rate:

An assessee has an option to that he make an application to the Assessing Officer in Form no. 13 and obtain such certificate from him, as may be appropriate, authorizing the payer not to deduct tax or to deduct tax at a lower rate.