5102/1992. - Income Tax - 5102/1992

INSTRUCTION NO. 5102/1992 Dated: January 28, 1992 Section(s) Referred: 203 Statute: Income - Tax Act, 1961 Please refer to the Board's letter of even number dated 10th May, 1991 regarding the problem faced by the public sector banks owing to the issue of TDS certificates by RBI in old forms relating to interest on securities because of the shortage of the unified Form (Form No. 16) during the financial year 1989-90. 2. It was decided by the Board that the certificate issued by the RBI in the old form relating to interest on securities may be accepted for the assessment year 1990-91 in the case of public sector banks, subject to the fulfilment of the following conditions: a) An Indemnity Bond may be obtained from the assessee, as laid down in sub-rule (5) of rule 31 of the Income-tax Rules, 1962. b) The genuineness of the certificates may be ensured by the Assessing Officers. It was also clarified that no interest u/s. 244A will be payable to the banks. 3. Representations have since been received from several other banks, including foreign banks to the effect that the aforesaid relaxation in respect of TDS certificates in old forms may be allowed in their cases also since the RBI had issued certificates in old form in their case also. 4. The matter has been considered by the Board and it has been decided that the facility for tax credit on the basis of old TDS certificates issued by RBI in relation to interest on securities will be extended to the private sector banks, foreign banks and other banks also for the assessment year 1990-91. This facility will however, be subject to the conditions mentioned in para 2 above. 5. Representations have also been received to the effect that the TDS certificates in the old forms issued by other Government bodies like the State Electricity Boards, State Government Corporations etc., should also be accepted for the assessment year 1990-91, like the certificates issued by the RBI, in the case of banks. The Board has decided that the Chief Commissioners may themselves decide the matter in the light of shortage or availability of unified form (Form No. 16) to these bodies at the relevant time in various CCs regions. 6. These decisions may please be brought to the notice of all concerned. F. No. 275/69/91-II(8)