Deduction of tax at source-Section 193 read with section 197(1)/(2) of the Income-tax Act, 1961-Interest on Govt. Securities-Rates of tax applicable during the financial year 1986-87 - Income Tax - 460/1986

Deduction of tax at source-Section 193 read with section 197(1)/(2) of the Income-tax Act, 1961-Interest on Govt. Securities-Rates of tax applicable during the financial year 1986-87 Circular No.460 Dated 3/7/1986 From B. Nagarajan, Secretary, Central Board of Direct Taxes. To All Accountants-General Comptrollers, Accountant General, Post Telegraph, Simla, Deputy Accountant General, Post Telegraph, Calcutta, and 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 Govt. Securities-Rates of tax applicable during the financial year 1986-87. I am directed to invite a reference to this Department's Circular No. 427 [F. No. 275/25/85-IT(B)] dated 31-7-1985 [printed at [1985] 155 ITR (St.) 56 and Part I, Vol. 23, Sec. IV, Taxman, October, 1985, pages 77-80] on the above subject, wherein you were requested to issue necessary instructions for making deduction of income-tax at source from the payment of "Interest on Govt. Securities" at the rates prescribed therein for the financial year 1985-86. A draft Circular to be issued to all Treasury Officers, etc., by your office had also been enclosed therewith. The only important change brought about by the Finance Act, 1986, in so far as in its applicability in the case of tax deduction at source from payments of "Interest on Govt. Securities" is the deletion of all references to surcharge. The basic rates of income-tax as communicated in the aforesaid Circular remain unchanged in its application during the financial year 1986-87. It is, therefore, requested that a Circular on the basis of the draft already supplied to you along with this Department's Circular No. 427, dated 31-7-1985 [1985] 155 ITR (St.) 56, may please be issued to all Treasury Officers and Sub-Treasury Officers under your control individually after deleting all references to surcharge made therein and also after making necessary corrections in respect of the year wherever applicable. Yours faithfully, (Sd.) B. Nagarajan, Deputy Secretary to the Govt. of India.