Deduction of income-tax at source-Section 194D of the Income-tax Act, 1961-Deduction from insurance commission etc.-Financial year 1977-78 - Income Tax - 216/1977

Deduction of income-tax at source-Section 194D of the Income-tax Act, 1961-Deduction from insurance commission etc.-Financial year 1977-78 Circular No. 216 Dated 31/3/1977 From Shri S.R. Wadhwa, Deputy Secretary, Department of Revenue Banking, Government of India. To All insurance companies. Sir, Subject: Deduction of income-tax at source-Section 194D of the Income-tax Act, 1961-Deduction from insurance commission etc.-Financial year 1977-78. I am directed to invite a reference to this Department's Circular No.199 (F.No.275/62/76-ITJ)* dated June 25, 1976, on the subject of deduction of income-tax from payments of income "by way of insurance commission" during the year 1976-77. 2. The Finance Bill, 1977, as introduced in Parliament, prescribes the same rates for deduction of tax from insurance commission during the financial year 1977-78 as were in force during the financial year 1976-77. Hence, until further instructions, tax at source from payments of income by way of insurance commission within the meaning of section 194D of the Income-tax Act, 1961, may be deducted at the same rates as are given in Part II of the First Schedule to the Finance Act, 1976. 3. These instructions may please be brought to the notice of all concerned. In cases of doubt, the Income-tax Officer concerned may be consulted. Yours faithfully, (Sd.) S.R. Wadhwa, Deputy Secretary to the Government of India. * See [1976] 104 ITR (St.) 48.