Tax Deduction at Source on Deep Discount Bonds: deduction occurs at redemption; certificate or declaration can prevent or reduce deduction. Tax deduction at source on income from Deep Discount Bonds is required only at the time of redemption, regardless of whether the bond holder reported income annually on an accrual basis or only at redemption. A holder who declared accrual income may apply for a certificate for no or lower deduction by filing the prescribed form with year wise income details (and transferor particulars if not an original subscriber); the Assessing Officer may issue a reduced rate certificate after satisfaction. Resident individual original subscribers who declare accrual income and have no tax liability may furnish the prescribed declaration to avoid deduction, subject to limits on accumulated interest for certain individuals.
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Provisions expressly mentioned in the judgment/order text.
Tax Deduction at Source on Deep Discount Bonds: deduction occurs at redemption; certificate or declaration can prevent or reduce deduction.
Tax deduction at source on income from Deep Discount Bonds is required only at the time of redemption, regardless of whether the bond holder reported income annually on an accrual basis or only at redemption. A holder who declared accrual income may apply for a certificate for no or lower deduction by filing the prescribed form with year wise income details (and transferor particulars if not an original subscriber); the Assessing Officer may issue a reduced rate certificate after satisfaction. Resident individual original subscribers who declare accrual income and have no tax liability may furnish the prescribed declaration to avoid deduction, subject to limits on accumulated interest for certain individuals.
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