Instructions for deduction of tax at source from interest on securities during financial year 1975-76 at the rates specified in Part III of First Schedule to Finance Bill, 1975

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....r on the basis of this draft may be issued by you immediately to all Treasury Officers and Sub-Treasury Officers under your control, individually. Circular : No. 160 [F.No. 275/16/75-ITJ], dated 18-3-1975. DRAFT CIRCULAR REFERRED TO IN INSTRUCTIONS 1. I am to invite your attention to this Office Letter......regard­ing deduction of income-tax and surcharge from interest on Gov­ernment securities during the financial year 1974-75. 2. According to the Finance Bill, 1975, income-tax is to be deducted from the entire amount of interest on securities at the following rates, namely :     Income-tax     Rate of Income-tax Rate of Surcharge I. In the case of a person other than a com....

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....ding interest payable on a tax-free security) 22 per cent 1 per cent   (ii)   where   the   company  is  not  a  domestic company—         (a)    on   interest   payable  on  a   tax-free security 44 per cent 2.2 per cent     (b)    on interest on other securities 70 per cent 3.5 per cent 3. The term "domestic company" means an Indian company or any other company which, in respect of its income liable to income-tax under the Act, for the assessment year commencing on April 1, 1975 has made the prescribed arrangements for the declaration and paymen....

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.... case of the aforesaid Gold Bonds, where the holder thereof makes a declaration in writing before the person responsible for making the payment that the total nominal value of 6½ per cent Gold Bonds, 1977 or, as the case may be, 7 per cent Gold Bonds, 1980 held by him (includ­ing such Bonds, if any, held on his behalf by any other person) did not in either case exceed Rs. 10,000 at any time during the period to which the interest relates. (5) No tax should be deducted from interest payable to a non-resident on 4¼ per cent National Defence Loans, 1968 and 4¾ per cent  National Defence Loans, 1972, as the interest paid on these loans to non-residents is totally exempt from income-tax under Notification No. SO 3331, issued under....