Special-tax on the gross amount of interest received by or accruing to the Scheduled Banks on loans and advances made in India

Special-tax on bank interest requires scheduled banks' collection estimates and classification by company status for budget reporting.

The Instruction implements the Interest Tax Act, 1974 and requires submission of data for budget estimates-actual preceding-year collection, current-year collections to date, revised current-year estimates and forecasts-together with particulars of tax paid by advance-tax, self-assessment and regular assessment; two proformae are prescribed and collections must include Interest Tax collected on self-assessment. Collections and related information must be shown separately for banks that are companies and those that are not, following assessee status under the Income-tax Act, and a schedule of banks with their company/non-company status must be furnished with the six-monthly estimate.