Social security certificates: interest taxable on annual accrual, no tax deducted on discharge value; nominee payments exempt.

Interest on Social Security Certificates is taxable under the Income-tax Act on the basis of the annual accrual specified in rule 16, but no tax is to be deducted at the time of payment of the discharge value; amounts payable to a nominee or legal heir under rule 18(1) are not liable to such tax.

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