Deduction of income-tax at source under section 194D of the Income-tax Act, 1961--Deduction from insurance commission, etc.--Rate of tax applicable during the financial year 1990-91

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....r section 194D of the Income-tax Act, 1961, were intimated to you. There is no change in the rates of tax for the financial year 1990-91. For the sake of convenience, the rates for deduction of tax at source under section 194D of the Income-tax Act, 1961, during the financial year 1990-91 are indicated below: Income-tax (i) In the case of a person (other than a company) who is a resident in India 10% (ii) In the case of a domestic company 21.5% 2. The provisions of section 194D of the Income-tax Act, 1961, apply only in relation to income by way of insurance commission paid to a resident. However, under the provisions of section 195 of the Income-tax Act, income-tax is required to be deducted from payments (including payment by way ....

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....ere the amount of such income or the aggregate amount of such income during the financial year does not exceed Rs.5,000. 5. It may be noted that the exemption of Rs.5,000 mentioned in para 4 above will not be applicable to such payments made to non-residents. In the case of payments to non-residents where any such sum is credited to any account, whether called "suspense account" or by any other name, in the books of account of the person liable to pay such income to a non- resident, shall be deemed to be credit of such income to the account of the payee and tax shall be deducted therefrom. In a case where the person responsible for paying any such income to a non-resident considers that the whole of such income would not be income chargeab....

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....rnish a certificate as required by section 203, he shall, on an order passed by the income-tax authority under section 272A of the Income-tax Act pay, by way of penalty a sum which shall not be less than Rs.100 but which may extend to Rs.200 for every day during which the failure continues. (b) According to the provisions of section 203A of the Income-tax Act, it is obligatory for all persons responsible for deducting tax at source to quote the tax deduction account number (TAN) in the challans, TDS-certificates, periodical returns, etc. Detailed instructions in this regard are available in this Department's Circular No.497 [F.No.275/118/87-IT(B)], dated 9-10-1987 (See [1988] 169 ITR (St.) 54). If a person fails to comply with the provisio....

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....ut which may extend to two hundred rupees for every day during which the failure continues. (d) According to the provisions of section 200 of the Income-tax Act, any person deducting any sum in accordance with the provisions of section 194D or section 195 shall pay, within the prescribed time, the sum so deducted to the credit of the Central Government. If he fails to deduct tax at source or after deducting fails to pay the tax to the credit of the Government, he shall be liable to action in accordance with the provisions of section 201. In this connection, attention is also invited to the provisions of section 276B of the Income-tax Act, according to which, if a person fails to pay to the credit of the Central Government the tax deducted ....

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.... any other Paragraph of this Part applies— Rates of income-tax (1) where the total income does not exceed Rs. 22,000 Nil; (2) where the total income exceeds Rs. 22,000 but does not exceed Rs. 30,000 20 per cent of the amount by which the total income exceeds Rs. 22,000; (3) where the total income exceeds Rs. 30,000 but does not exceed exceeds Rs. 50,000; Rs. 1,600 plus 30 per cent of the amount by which the total income Rs. 30,000 (4) where the total income exceeds Rs. 50,000 but does not exceed Rs. 1,00,000 Rs. 7,600 plus 40 per cent of the amount by which the total income exceeds Rs. 50,000; (5) where the total income exceeds Rs. 1,00,000 Rs. 27,600 plus 50 per cent of the amount by which the total income exceeds Rs. 1,0....