Deduction of tax at source-Income-tax deduction from salaries during the financial year 1987-88 under section 192 of the Income-tax Act, 1961-Deduction admissible in respect of deposits made in the National Savings Scheme, 1987

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....the Income-tax Act, 1961-Deduction admissible in respect of deposits made in the National Savings Scheme, 1987 Circular No. 501 Dated 20/1/1988 To All State Governments (including Administration of Union Territories) Sir, I am directed to invite a reference to this Ministry's Circular No. 489 (F. No. 275/51/87-IT(B)), dated 25th June, 1987-[1987] 166 ITR (St.) 152, wherein the rates of i....

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....ational Savings Scheme together with the interest accrued thereon, an amount equal to 50% of the amount so withdrawn shall be deemed to be the income of the taxpayer for the previous year in which such withdrawal is made. Interest on the deposits made under the National Savings Scheme will be taxable only in the year of withdrawal and to the extent of fifty per cent. thereof. The Department of Eco....