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TMI BlogInstructions for deduction of tax at source from interest on securities during financial year 1974-75 at the rates specified in Part III of First Schedule to Finance Bill, 1974X X X X Extracts X X X X X X X X Extracts X X X X ..... may be issued by you immediately to all Treasury Officers and Sub-Treasury Officers under your control, individually. Circular : No. 129 [F.No. 275/35/74-ITJ], dated 12-3-1974 . DRAFT CIRCULAR REFERRED TO IN INSTRUCTIONS 1. I am to invite your attention to this Office Letter......regard ing deduction of income-tax and surcharge from interest on Gov ernment securities during the financial year 1973-74. 2. According to the Finance Bill, 1974, 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 compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The term "domestic company" means an Indian company, or any other company which in respect of its income liable to income-tax under the Act for the assessment year commencing on April 1, 1974 has made the prescribed arrangements for the declaration and payment within India of the dividends (including dividends on preference shares) payable out of such income in accordance with the provisions of section 194. 4. In making payment or crediting interest on Government securi ties on or after April 1, 1974, you should, therefore, deduct income-tax at the rates specified above, except in cases where an exemption or abatement certificate granted by an Income-tax Officer under sub-section (1) of section 197 is produced. The following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yable to a non-resident on 4¼ per cent National Defence Loans, 1968 and 4¾ 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 ). In the case of residents receiving interest on these loans, deduc tion 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 Na tional 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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