Deduction of tax at source under section 193 read with section 197(1)/(2) of the Income-tax Act, 1961-Interest on Government Securities-Levy of surcharge on incomes-Regarding - Income Tax - 506/1988

Deduction of tax at source under section 193 read with section 197(1)/(2) of the Income-tax Act, 1961-Interest on Government Securities-Levy of surcharge on incomes-Regarding Circular No. 506 Dated 22/2/1988 To All Accountants-General Comptrollers, Accountant-General, Post Telegraph, Simla, Deputy Accountant-General, Post Telegraph, Calcutta, Comptroller Auditor-General of India, New Delhi, Reserve Bank of India, Central Office, Bombay. Sir, Subject: Deduction of tax at source under section 193 read with section 197(1)/(2) of the Income-tax Act, 1961-Interest on Government Securities-Levy of surcharge on incomes-Regarding. I am directed to invite a reference to this Department's Circular No. 486 (F. No. 275/41/87-IT(B)), dated 1st June, 1987-[1987] 166 ITR (St.) 130, wherein the rates of tax applicable for making deduction of income-tax at source from the payment of interest on Government Securities for the financial year 1987-88 were intimated to you. 2. It is brought to your notice that by section 3 of the Finance (Amendment) Act, 1987 (No. 46 of 1987), the First Schedule to the Finance Act, 1987, has been amended. According to this amendment, the amount of income-tax computed on the basis of the aforesaid circular shall be increased by a surcharge for the purpose of the Union calculated at the rate of 5% of such income-tax. The levy of surcharge comes into force with effect from 16-12-1987. 3. You are requested to issue necessary instructions immediately to all the Treasury Officers, Banks, etc., under your control for ensuring compliance with these instructions. 4. If any assistance is required in this regard, the concerned Income-tax Officer and/or the Local Public Relation Officer to the Income-tax Department may be approached for the same. Yours faithfully, (Sd.) B.E. Alexander, Under Secretary, Central Board of Direct Taxes.