Deduction of tax at source-Section 193 read with section 197(1)/(2) of the Income-tax Act, 1961-Interest on Government securities-Rates of tax applicable during the year 1985-86 - Income Tax - 427/1985

Deduction of tax at source-Section 193 read with section 197(1)/(2) of the Income-tax Act, 1961-Interest on Government securities-Rates of tax applicable during the year 1985-86 Circular No.427 Dated 31/7/1985 From Shri B. Nagarajan, Secretary, Central Board of Direct Taxes. New Delhi. To All Accountants General Comptrollers, Accountant General, Posts Telegraphs, Simla, Deputy Accountant General, Posts Telegraphs, Calcutta Comptroller Auditor General of India, New Delhi. Sir, Subject: Deduction of tax at source-Section 193 read with section 197(1)/(2) of the Income-tax Act, 1961-Interest on Government securities-Rates of tax applicable during the year 1985-86. I am directed to invite a reference to the Board's Circular No. 393 [F. No. 275/14/84-IT (B)] dated the September 5, 1984, [printed in [1985] 155 ITR (St.) 51, (supra)] wherein your were requested to issue necessary instructions for making deduction of income-tax at source from the payments of "Interest on Government securities" a prescribed in the Finance Act, 1983, as modified by the Finance Act, 1984. 2. A few changes in the rates of tax at which deduction has to be made from the payments of interest on Government securities during the financial year 1985-86 have been made in the Finance Act, 1985. I am, accordingly enclosing a copy of the draft circular letter setting out the rates at which income-tax and surcharge should be deducted from such payments after March 31, 1985. You may please issue a circular on the basis of this draft to the Treasury Officers and Sub-Treasury Officers under your control individually with a view to ensuring that the provisions of the Act are strictly adhered to by them. Yours faithfully, (Sd.) B. Nagarajan Secretary, Central Board of Direct Taxes.