9911796707
TMI BlogDeduction of tax at source-Section 193, read with section 197(1)/(2) of the Income-tax Act, 1961-Interest on Government securities-Rates of tax applicable during the year 1988-89X X X X Extracts X X X X X X X X Extracts X X X X ..... fficers, etc., for making deduction of income-tax at source from the payment of "Interest on Government securities" for the financial year 1987-88. Reference is also invited to this Department's Circular No. 506 [F. No. 275/21/88-IT(B)], dated February 22, 1988 (printed at [1988] 171 ITR (St.) 2, wherein the fact of levy of surcharge was intimated to you. 2. There is no change in the basic rates of tax for the financial year 1988-89 in so far as they relate to deduction of tax at source from payment of "Interest on Government securities". However, the amount of tax deducted as per the rates given in the enclosed draft circular shall be increased: (i) by a surcharge for the purpose of the Union at 5% of such income-tax in the case of a resident Indian; and (ii) by a surcharge at 5% of such income-tax in the case of a domestic company. 3. I am enclosing a copy of the draft circular letter setting out the rates at which income-tax should be deducted from such payments after March 31, 1988. You may please issue the circular on the basis of this draft to all Treasury Officers and Sub-Treasury Officers, banks, etc., under your control individually, with a view to ensuring that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of income-tax from interest on Government securities during the financial year 1987-88. 2. Income-tax is to be deducted during the financial year 1988-89, from the entire amount of interest on securities at the following rates, namely:- Surcharge on income-tax The amount of tax deducted as per the rates given above shall be increased :— (i) by a surcharge for the purpose of the Union at 5% of such income-tax in the case of resident Indians; and (ii) by a surcharge at 5% of such income-tax in the case of a domestic company. 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 Income-tax Act, 1961, for the assessment year commencing on the 1st day of April, 1988, 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 of the Income-tax Act. 4. In making payment or crediting interest on Government securities after April 1, 1988, you are requested to deduct income-tax at the rates specified above, except i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax should be deducted from any sum payable in respect of any security owned by a corporation established by or under a Central Act which under any law for the time being in force is exempt from income-tax on its income. Payments made to Life Insurance Corporation and Unit Trust of India are exempt from the requirement of tax deduction at source by their respective Acts. (vii) under section 288B of the Income-tax Act, fractions of one rupee contained in the amount of tax will have to be rounded off to the nearest rupee by ignoring amounts less than fifty paise and increasing amounts of fifty paise or more to one rupee. Hence, the amount of tax to be deducted at source should be rounded off to the nearest rupee in accordance with the aforesaid provisions of the Act. 5. In case of any doubt, the Assessing Officer or the local Public Relations Officer of the Income-tax Department should be consulted before making deduction from interest on Government securities. 6. The copies of this circular will be available with the Director of Inspection (Research, Statistics and Public Relations), 6th Floor, Mayur Bhawan, Connaught Circle, New Delhi-110 001. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ............................................................, son/daughter/wife of...........................................................resident of† ........................................................... do hereby declare :— 1. that the securities, particulars of which are given below, stand in my name and are beneficially owned by me, and the interest therefrom is not includible in the total income of any other person under sections 60 to 64 of the Income-tax Act, 1961 : Description of securities Number of securities Dates of securities Amount of securities Date(s) on which the securities were acquired by the declarant 2. that my present occupation is.............. 3. that my estimated total income including the interest on securities referred to in Paragraph 1 above, computed in accordance with the provisions of the Income-tax Act, 1961 for the previous year ending on........ relevant to the assessment year 19.... 19.... will be less than the minimum liable to income-tax; 4. *"that I have not been assessed to income-tax at any time in the past but I fal ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
