TMI BlogInstructions for deduction of tax at source from interest on securities during the financial year 1971-72 at the rates specified in Part III of First Schedule to Finance (No. 2) Bill, 1971X X X X Extracts X X X X X X X X Extracts X X X X ..... should be deducted from interest on Government securities after May 28, 1971. It is requested that a circular on the basis of this draft may be issued by you immedi ately to all Treasury Officers and Sub-Treasury Officers under your control, individually. Circular : No. 59 [F. No. 275/37/71-ITJ], dated 3-6-1971. 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 1970-71. 2. According to the Finance (No. 2) Bill, 1971, income-tax is to be deducted from the entire amount of interest on securities at the following rates namely : Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est on other securities 70 per cent Nil 3. The term "domestic company" for the present purposes, means an Indian company or any other company which, in respect of its income liable to income-tax under the Act, has made the pre scribed 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 provi sions of section 194. 4. In making payment or crediting interest on Government securi ties on or after May 28, 1971 you should, therefore, deduct income-tax at the rates specified above, except in the cases where an exemption or abate ment certificate granted by an Income-tax Officer under sub-section (1) of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from interest payable 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 National Savings Certificates (First Issue) including National Savings Certificates (First Issue) Bank Series or 7-year National Sav ings Certificates (Fourth Issue). (7) No tax should be deducted from any interest payable on any other security of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invited to the Board's Circulars F. No. 275/41/70-ITJ, dated 24-3-1970, 7-4-1970 and 8-6-1970, on the subject of deduction of tax from interest on securities. 2. As it may take some time before the Finance Bill for 1971-72, is introduced in Parliament and passed into law, it is desired that, till further instructions, deduction of tax from "interest on securities" may be made during the financial year 1971-72 at the same rates as were in force during the financial year 1970-71. 3. This may please be brought to the notice of all Treasury Officers and Sub-Treasury Officers under your control. Circular : No. 54 [F. No. 275/37/71-ITJ], dated 16-3-1971. - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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