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TMI BlogInstructions for deduction of tax at source from interest on securities during financial year 1970-71 at the rates specified in Part III of First Schedule to Finance Bill, 1970X X X X Extracts X X X X X X X X Extracts X X X X ..... y to all Treasury Officers and Sub-Treasury Officers under your control, individually. Circular : No. 35 [F. No. 275/41/70-ITJ], dated 24-3-1970. Draft Circular Referred to in Instructions 1. I am to invite your attention to this Office Letter.........regarding deduction of income-tax and surcharge from interest on Government securities during the financial year 1969-70. 2. According to the Finance Bill, 1970, income-tax is to be deducted from the entire amount of interest on securities at the following rates, namely : Income-tax Rate of Income-tax Rate of Surcharge I. In the case of a person other than a company (i) where the person is resident on interest on securities (excluding interest payable on a tax-free security) 20 pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ranted by an Income-tax Officer under sub-section (1) of section 197 is produced. The following instructions should be allowed in this connection : (1) Exemption or abatement certificates issued before April 1, 1970 authorising deduction of tax at a particular rate expressed as a percentage of the amount of interest should be accepted and acted upon, if operative for the financial year ending on March 31, 1971. (2) Where a certificate is issued by the Income-tax Officer on or after April 1, 1970 authorising deduction of tax at a specified rate in respect of any person, income-tax should be deducted at the rates specified therein. (3) No tax should be deducted in cases in which from a certificate issued by the Income-tax Officer or otherw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns, 1968 and 4 per cent National Defence Loans, 1972 as the interest paid on these loans to non-residents is totally exempt from income-tax under Notification No. SO 3331, issued under section 10(4) of the Income-tax Act, 1961. In the case of residents receiving interest on these loans, deduction of tax has to be made at the prescribed rates, except when the recipient is an individual. (6) No tax should be deducted from interest payable on National Savings Certificates (First Issue) including National Savings Certificates (First Issue) Bank Series or 7-year National Savings Certificates (Fourth Issue). (7) No tax should be deducted from any interest payable on any other security of the Central or State Government where the security is hel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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