Deduction of income-tax at source-Section 194D of the Income-tax Act, 1961-Deduction from insurance commission, etc.-Rate of tax applicable during the financial year 1987-88-Levy of surcharge on income-tax-Regarding - Income Tax - 508/1988

Deduction of income-tax at source-Section 194D of the Income-tax Act, 1961-Deduction from insurance commission, etc.-Rate of tax applicable during the financial year 1987-88-Levy of surcharge on income-tax-Regarding Circular No. 508 Dated 23/2/1988 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.-Rate of tax applicable during the financial year 1987-88-Levy of surcharge on income-tax-Regarding. I am directed to invite a reference to this Department's Circular No. 488 (F. No. 275/40/87-IT(B)), dated 16th June, 1987-[1987] 166 ITR (St.) 142, wherein the rates applicable for making deduction of income-tax at source under section 194D of the Income-tax Act, from the payment of income by way of insurance commission 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 w.e.f. 16-12-1987. 3. The contents of this circular may be brought to the notice of all concerned. 4. If any assistance is required in this regard, the concerned Income-tax Officer or the Local Public Relations Officer of the Income-tax Department may be approached for the purpose. Yours faithfully, (Sd.) B.E. Alexander, Under Secretary, Central Board of Direct Taxes.