Instructions for deduction of tax at source from interest other than interest on securities during financial year 1974-75 at the rates specified in Part II of First Schedule to Finance Act, 1974 - Income Tax - 134/1974

Circular No. 134 Dated 16/5/1974 Instructions for deduction of tax at source from interest other than interest on securities during financial year 1974-75 at the rates specified in Part II of First Schedule to Finance Act, 1974 1. Under section 194A any person not being an individual or a Hindu undivided family, paying to a resident, any income by way of interest (other than interest on securities) is required, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or a draft, to deduct income-tax thereon at the rates in force. The rates for the financial year 1974-75 as prescribed in Part II of the First Schedule to the Finance Act, 1974 are as follows : Income-tax Surcharge I. In the case of a person other than a company 10 per cent Nil II. In the case of a company— ( a ) where the company is a domestic company 20 per cent 1 per cent ( b ) where the company is not a domestic company 7 per cent 3.5 per cent 2. Under section 195 any person responsible for paying to a non-resident, not being a company, or to a company which is neither an Indian company nor a company which has made the prescribed arrangements for the declaration and payment of dividend within India, any interest (other than interest on securities), will be required, at the time of payment, to deduct income-tax thereon at the rates in force. The rates prescribed for the purpose in Part II of the First Schedule to the Finance Act, 1974 for the financial year 1974-75 are as under : Income-tax Surcharge I. In the case of a person other than a company 30 per cent 3 per cent or income-tax and surcharge in respect of the income by way of interest at the rates prescribed in sub-paragraph I of Paragraph A of Part III of this Schedule, if such income had been the total income, whichever is higher; II. In the case of a company 70 per cent 3.5 per cent. Circular : No. 134 [F.No. 275/12/74-ITJ], dated 16-5-1974 .