Tax Deduction on Government Securities: 5% Surcharge Introduced by Finance (Amendment) Act 1987; Effective December 16, 1987.

The circular addresses the deduction of tax at source under section 193, in conjunction with section 197(1)/(2) of the Income-tax Act, 1961, concerning interest on Government Securities. It informs relevant authorities about an amendment made by the Finance (Amendment) Act, 1987, which introduces a 5% surcharge on the income tax computed for the financial year 1987-88. This surcharge is effective from December 16, 1987. The circular instructs all Treasury Officers, Banks, and other relevant entities to comply with these changes and seek assistance from the Income-tax Department if needed.

---

---

---