727/CBDT. - Income Tax - 727/CBDT

INSTRUCTION NO. 727/CBDT Dated : August 2, 1974 Section(s) Referred: 143 Statute: Income - Tax Act, 1961 Different rates of tax are applicable to companies depending upon the status and nature of a company. Similarly, different rates of tax are applicable in the case of HUF. Which at any time during the previous year relevant to assessment year 1974-75 has atleast one member whose total income exceeds Rs.5,000. In other category of cases also the status of the assessee has got a definite bearing on the calculation of tax. 2. Various instances have come to the notice of the Board where in the absence of any specific mention regarding the nature and status of the assessee, incorrect rate of tax has been applied by the office staff resulting in undercharge or over-charge of tax. 3. I am directed, therefore, to request you to direct the Income-tax Officers that they should invariably mention the status and nature of assessee in the assessment order itself against column No.3 of ITNS 65. The office staff should also be careful in verifying the relevant particulars from the assessment order and the other documents as well as the past record to ensure that no mistake occurs in regard to the correct computation of income-tax. 4. Necessary instructions may please be issued to all officers and staff working in the charge on the above lines for strict compliance.