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 1989-90X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of income-tax at source from the payment of interest on Government securities for the financial year 1988-89. 2. There is no change in the basic rates of tax for the financial year 1989-90 in so far as they relate to deduction of tax at source from payments of interest on Government securities. However, the Finance Act, 1989, has brought about some important changes in the provisions of section 193 of the Income-tax Act relating to deduction of tax at source from income by way of interest on securities. The changes are: (a) In order to prevent the postponement of liability to deduct tax and payment to the credit of the Central Government, the Finance Act, 1989, has amended section 193 whereby tax will be deducted at source either a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the enclosed draft circular shall be increased: (i) by a surcharge for purpose of the Union at 8% of such income-tax in the case of a resident person; (ii) by a surcharge of 8% of such income-tax in the case of domestic company. 3. A copy of the draft circular letter setting out the rates at which income-tax should be deducted from such payments after 31st March, 1989, is enclosed. On the basis of this draft, a circular may be issued to all Treasury Officers and Sub-Treasury Officers, banks, etc., under your control with a view to ensuring that the provisions of the Income-tax Act are strictly adhered to by the tax deductor. 4. In this connection, attention is invited to the provisions of sections 200, 203, 203A and 206 of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DS-certificates, periodical returns, etc. Detailed instructions in this regard are available in this Department's Circular No. 497 [F. No. 275/118/87-IT(B)], dated October 9, 1987+. If a person fails to comply with the provisions of section 203A, he shall, on an order passed by the Assessing Officer under section 272BB, pay, by way of penalty, a sum which may extend to Rs. 5,000. (c) According to the provisions of section 206 of the Income-tax Act, read with rules 36A and 37 of the Income-tax Rules, the prescribed person in the case of every office of Government, the principal officer in the case of every company, the prescribed person in the case of every local authority or other public body or association, every private employer and eve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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