TMI BlogDeduction of income-tax at source-Section 194D of the Income-tax Act, 1961-Deduction from insurance commission, etc.-Rate of tax applicable during the Financial Year 1987-88X X X X Extracts X X X X X X X X Extracts X X X X ..... 987-88. I am directed to invite a reference to this Department's Circular No. 462 (F. No. 275/67/86-IT(B)) dated 10-7-86 (printed at [1986] 160 ITR (St.) 58) wherein the rates at which the deduction of income-tax was to be made during the financial year 1986-87 from payment of income by way of insurance commission under section 194D of the Income-tax Act, 1961, were intimated. There is no change in the rate of tax for the financial year 1987-88. For the sake of convenience, the rates for deduction of tax at source under section 194D of the Income-tax Act, 1961, during the financial year 1987-88 are indicated below: Income-tax I. In the case of a person (other than a company) who is a resident in India 10% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year to the account of, or to, the payee does not exceed five thousand rupees." Similarly, sub-sections (1) and (2) of section 195 have also been substituted/amended as under:- "195. (1) Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest (not being interest on securities) or any other sum chargeable under the provisions of this Act (not being income chargeable under the head "Salaries" or dividends) shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the provisions of sections 192 to 194, section 194A, section 194B, section 194BB, section 194C, section 194D and section 195 if he has not been allotted any tax deduction account number shall, within such time as may be prescribed, apply to the Income-tax Officer for the allotment of a tax deduction account number. (2) Where a tax deduction account number has been allotted to a person, such person shall quote such number:- (a) in all challans for the payment of any sum in accordance with the provisions of section 200; (b) in all certificates issued in accordance with the provisions of section 203; (c) in all the returns delivered in accordance with the provisions of sections 206, 206A and 206B to any income-tax authority; and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advised to apply for the allotment of tax-deduction account number to the concerned Income-tax Officer. 6. In case of doubt, a reference should always be made to the provisions of the Income-tax Act and relevant Finance Act through which changes in the law/tax structures are made. 7. The contents of the circular may please be brought to the notice of all concerned. In case of doubt, the ITO concerned and/or the Local Public Relation Officer may be approached for the same. Copies of the Circular will be available with the Director of Inspection (RS PR), 6th Floor, Mayur Bhawan, Connaught Circus, New Delhi-110 001. Yours faithfully, (Sd.) B. Nagarajan, Director, Central Board of Direct Taxes. - Circular - Trade Notice - Public ..... X X X X Extracts X X X X X X X X Extracts X X X X
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