Instructions for deduction of tax at source from interest on securities during financial year 1972-73 at the rates specified in Part III of First Schedule to Finance Bill, 1972

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..... immediately to all Treasury Officers and Sub-Treasury Officers under your control, individually. Circular : No. 82 [F. No. 275/9/72-ITJ], dated 20-3-1973. 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 1971-72. 2. According to the Finance Bill, 1972, 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 in India— on interest on securities (excluding interest payable on a tax-fre .....

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..... d above, except in the cases where an exemption or abatement certificate, granted by an In­come-tax Officer under sub-section (1) of section 197 is pro­duced. The following instructions should be followed in this connection : (1) Exemption or abatement certificates issued before April 1, 1972 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, 1973. (2) Where a certificate is issued by the Income-tax Officer on or after April 1, 1972 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 .....

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..... 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 held by a resident individual, and the holder makes a declaration in writing before you to the effect that— (a) he has not previously been assessed under the 1961 Act, or under the 1922 Act; (b) his total income of the previous year in which the interest is due is not likely to exceed the maximum amount not chargeable to income-tax; and (c) the total nominal value of the securities held by him (including such securities, if any, as are held on his behalf, by any other person) did not exceed Rs. 2,500 at any time during the said previous y .....

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