Deduction of tax at source under section 194A of the Income-tax Act, 1961-Deduction from interest income other than income chargeable under the head "Interest on securities"-Rate of tax applicable during the financial year 1987-88-Levy of surcharge on income-tax-Regarding - Income Tax - 510/1988

Deduction of tax at source under section 194A of the Income-tax Act, 1961-Deduction from interest income other than income chargeable under the head "Interest on securities"-Rate of tax applicable during the financial year 1987-88-Levy of surcharge on income-tax-Regarding Circular No. 510 Dated 23/2/1988 To All Chambers of Commerce, etc. Sir, Subject: Deduction of tax at source under section 194A of the Income-tax Act, 1961-Deduction from interest income other than income chargeable under the head "Interest on securities"-Rate of tax applicable during the financial year 1987-88-Levy of surcharge on income-tax-Regarding. I am directed to say that the rates at which tax is to be deducted at source under section 194A of the Income-tax Act, by person who are responsible for paying to a resident any income by way of interest other than income chargeable under the head "Interest on securities" are given in Part II of the First Schedule to the Finance Act, 1987. The exempted categories from which such deduction will not be made are given in the said section. It is brought to your notice that vide section 3 of the Finance (Amendment) Act, 1987 (No. 46 of 1987), the First Schedule to the Finance Act, 1987, has been amended with immediate effect. According to this amendment, the amount of income-tax computed on the basis of the rates laid down in the Finance Act, 1987, shall be increased by a surcharge for purposes of the Union calculated at the rate of 5% of such income-tax. The levy of surcharge has come into force w.e.f. 16-12-1987. 2. The contents of this circular may be brought to the notice of all concerned. 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.