Grant of exemption certificates in case of income of the share holder is less than the minimum liable to income-tax. - Income Tax - 413/CBDT

INSTRUCTION NO. 413/CBDT Dated: May 11, 1972 Section(s) Referred: 194 , Rule 29 of IT Rule Statute: Income - Tax Act, 1961 It has been represented to the Board that in order to encourage small investors to buy shares of companies dividends upto a sum of Rs. 400/- should be exempted from the purview of operation of section 194 of the I.T. Act, 1961. The Board have examined the matter and are of the view that the suggestion is not acceptable. Provision already exists in section 194 of the I.T. Act, 1961 and Rule 29 of the I.T. Rules 1962 for grant of exemption certificates in cases where the I.T. Officer is satisfied that the income of the share holder is less than the minimum liable to income-tax. You are requested to issue suitable instructions to the I.T. Officers working under you to expedite issue of such certificates wherever applied for. In this connection attention may also be drawn to the instructions contained in para 45 of the Board's Circular No. 12 (LXXVI-36)D of 1960 dated 16-6-1960 and Circular No. 35(XXI-12)D of 1960 dated 17-12-1960.