TMI BlogSection 193 of the Income-tax Act, 1961--Deduction of income-tax at source from interest on securities during the financial year 1994-95--Instructions regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... me called) shall be deemed to be a credit of such income to the account of the payee. 3. For the financial year 1994-95, the applicable rates in so far as they relate to deduction of tax at source from the payment of interest on securities are given in Part II of the First Schedule to the Finance Act, 1994. Briefly stated, these are as follows : (A) In the case of a person other than a company— (1) Where the person is resident in India, on income by way of interest payable on — (a) any security of the Central or a State Government : 10% (b) any debentures or other securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act : 10% (c) any debentures issued by a company where such debentures are listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 and any rules made thereunder : 10% (2) Where the person is not resident in India income-tax @ 30% of the amount of income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 197 is issued by the Assessing Officer on or after 1st April, 1994, specifying the rate of such deduction of tax at source. Where such exemption on abatement certificate has been issued before 1st April, 1994, it should be accepted and acted upon, if it is operative for the financial year ending 31st March, 1995. (e) no tax should be deducted from interest payable on securities/bonds/debentures which have been specifically exempted from the requirement of tax deduction at source under the proviso to section 193, or, which have been specified by the Central Government by notification in the Official Gazette under the proviso to section 193. (f) no 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. For instance, payments made to the Life Insurance Corporation, Unit Trust of India and the Small Industries Development Bank of India (SIDBI) are exempt from the requirement of tax deduction at source by virtue of their respective Acts. (g) the term "domestic company" means an Indian company or any other company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnish a certificate to the effect that tax has been deducted and to specify therein the amount so deducted and certain other particulars. The certificate has to be furnished in Form No. 16A (copy enclosed at Annexure III) within the prescribed period of one month and fourteen days to the person to whose account credit is given or to whom payment is made by any mode, as the case may be. Form No. 16A can be issued by the tax deductors on their own stationery. If a person fails to furnish a certificate as required under section 203, he shall be liable to pay, by way of penalty under section 272A(2), a sum which shall not be less than Rs. 100 but which may extend to Rs. 200 for every day during which the failure continues. (c) According to the provisions of section 203A, it is obligatory for all person responsible for deducting tax at source to obtain and quote the tax deduction account number (TAN) in the challans, TDS certificates, returns, etc. Detailed instructions in this regard are available in the Board's Circular No. 497 (F. No. 275/118/87-IT(B)), dated October 9, 1987*. If a person fails to comply with provisions of section 203A, he shall be liable to pay, by way of penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... divided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which Sub-paragraph II of this Paragraph or any other paragraph of this Part applies, — Rates of income-tax (1) where the total income does not Nil; exceed Rs. 35,000 (2) where the total income exceeds 20 per cent of the amount by which Rs. 35,000 but does not exceed the total income exceeds Rs. 35,000; Rs. 60,000 (3) where the total income exceeds Rs. 5,000 plus 30 per cent of the Rs. 60,000 but does not exceed amount by which the total income Rs. 1,20,000 exceeds Rs. 60,000; (4) where the total income exceeds Rs. 23,000 plus 40 per cent of the Rs. 1,20,000 amount by which the total income exceeds Rs. 1,20,000 . ANNEXURE II FORM NO. 15F [See rule 29C(1)] Declaration under section 197A(1) of the Income-tax Act, 1961, to be made by an in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ...... Notes : 1. @ Give complete postal address. 2. The declaration should be furnished in duplicate. 3. *Delete whichever is not applicable. 4. Before signing the verification, the declarant should satisfy himself that the information furnished in the declaration is true, correct and complete in all respects. Any person making a false statement in the declaration shall be liable to prosecution under section 277 of the Income-tax Act, 1961, and on conviction be punishable— (i) in a case where tax sought to be evaded exceeds one lakh rupees, with rigorous imprisonment which shall not be less than six months but which may extend to seven years and with fine; (ii) in any other case, with rigorous imprisonment which shall not be less than three months but which may extend to three years and with fine. (FOR USE BY THE PERSON TO WHOM THE DECLARATION IS FURNISHED) 1. Name and address of the person responsible for paying the interest on securities mentioned in paragraph 1 of the declaration 2. Date on which the declaration was furnished by the declarant 3. Period for which interest is paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ................................... ............................................................ ...................................................... ............................................................ ............................................................ ...................................................... Tax deduction nature of PAN/GIR No. of the payee Account No. of payment The deductor PAN/GIR No. of For the period..............19............ The deductor To 19........................ Details of payment, tax deduction and deposit of tax into central Government Account Date of pay- Amount Amount of Rate at Date Challan No. of Name of ment/credit paid/ Income- which deposit of tax into bank and credited tax deducted Central Government branch (Rs.) deducted Account where tax (Rs.) deposited ..... X X X X Extracts X X X X X X X X Extracts X X X X
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