TDS u/s 194B and 194C, accounting heads - Income Tax - 501/CBDT

INSTRUCTION NO. 501/CBDT Dated : January 22, 1973 Section(s) Referred: 194B ,194C Statute: Income - Tax Act, 1961 Part I of the First Schedule to the Finance Act, 1972 levies a surcharge on Income-tax for purposes of Union calculated with reference to the Income-tax payable by local authority, Life Insurance Corporation and Companies, Two new sections, viz,. Section 194B and 194C have also been introduced in the Income-tax Act. Section 194B provides for deductions of Income-tax at source from income by winnings from any lottery or crossword puzzle. Section 194C provides for deductions of Incometax from payments made to contractors and Sub-contractors. The Board have decided in consultation with the Comptroller Auditor General of India that the following minor and sub-heads of Accounts should be opened: III-Corporation Tax (a) Minor head Surcharge. Sub-heads: (i) Surcharge on Income-tax (ii) Surcharge on advance payment of tax. (iii) Deduct-Refunds. (b) Minor head Income-tax on companies. ( already existing) Sub-heads: (i) Deductions from prize winnings in lotteries and crossword puzzles under Section 194B of the I.T. Act, 1961. (ii) Deductions from payments to contractors under Section 194C of the I.T. Act, 1961. IV-Taxes on income other than Corporation tax Minor head Income-tax (already existing). Sub-heads: (a) Deductions from prize winnings in lotteries and crossword puzzles under section 194B of the I.T. Act, 1961. (b) Deductions from payments to contractors and sub-contractors under section 194C of the I.T. Act, 1961. 2. Necessary correction slips to Appendix 2 to Account Code Vol. I are being issued by the Comptroller Auditor General of India separately. Suitable changes may please be made in form ITNS 38 (Challan form), ITNS 71 (form of Budget estimates) and the form prescribed for submitting monthly Additional Information regarding Collection of Income-tax and Corporation Tax.