TaxTMI 
TaxTMI 
Section 193 of the Income-tax Act, 1961--Deduction of Income-tax at source from interest on securities during the financial year 1991-92--Instructions regarding
X X X X Extracts X X X X
X X X X Extracts X X X X
.... purpose, credit to any suspense account or any other account, by whatever name called, shall be deemed to be a credit of such income to the account of the payee; (b) tax will not be deducted at source from any interest payable to a resident individual on debentures issued by a company in which the public are substantially interested, if the interest is paid by the company by an account payee cheque and the amount of such interest, or, as the case may be, the aggregate amount of such interest paid or likely to be paid during the financial year by the company to such an individual does not exceed Rs.2,500; (c) tax will not be deducted at source under section 193 in the case of a resident individual who makes a declaration in Form No.15F to the effect that tax on his estimated total income of the financial year 1991-92 will be nil; (d) no tax will be deducted at source or it will be deducted at a lower rate in the case of a person other than a company where a certificate under section 197 is issued by the Assessing Officer specifying the rate of such deduction of tax at source. (4) The responsibilities, obligations, etc., under the Income-tax Act, of the perso....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f penalty under section 272A, 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. (c) According to the provisions of section 203A, it is obligatory for all persons responsible for deducting tax at source to obtain and quote the tax deduction account number (TAN) in the challans, TDS certificates, returns, etc. Detailed instructions in this regard are available in the Board'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 provisions of section 203A, he shall be liable to pay by way of penalty under section 272BB a sum up to Rs.5,000. (d) According to the provisions of section 206, read with rules 36A and 37 of the Income-tax Rules, the prescribed person in the case of every office of Government, the principal officer in the case of every company, the prescribed person in the case of every local authority or other public body or association, every private employer and every other person responsible for deducting tax at source shall prepare and deliver by the 30th June following the financial year, to the designate....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nbsp; (ii) Where the person is not resident in India— (1) In the case of a non-resident Indian (A) on investment income and long- term capital gains 20 per cent (B) on income by way of interest payable on a tax-free security 15 per cent (C) on the whole of the other Income-tax at 30 per centincome of the amount of the income or Income-tax in respect of the income at the rates prescribed in Sub-paragraph I of Paragraph A of Part III of the First Schedule to the Finance Act, 1992 (vide Annexure I), if such income had been the total income, whichever is higher.  ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e a certificate is issued by the Income-tax Officer /Assessing Officer on or after 1st April, 1991, authorising deduction of tax at a specified rate in respect of any person, income-tax should be deducted at the rates specified therein; (iii) no tax should be deducted in cases in which, from a certificate issued by the Income-tax Officer/Assessing Officer or otherwise, you are satisfied that the payee is a person exempt from payment of income-tax under sections 10 to 13A of the Income-tax Act, 1961; (iv) no tax should be deducted from interest payable on 7-Year National Savings Certificates (IV Issue), National Development Bonds, etc., which have been specifically exempted from the requirement of tax deduction at source under the proviso to section 193 or of the interest payable on such debentures/securities/bonds as have been specified by the Central Government by notification in the Official Gazette under the proviso to section 192; (v) no tax should be deducted from any interest payable on any other security of the Central or State Government where the security is held by a resident individual, and the holder makes a declaration in writing in duplicate in the prescribed....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ction 271C lays down that if any person fails to deduct tax at source he shall be liable to pay by way of penalty a sum equal to the amount of tax which he failed to deduct at source. In this regard, attention is also invited to the provisions of section 276B which lays down that if a person fails to pay to the credit of the Central Government the tax deducted at source by him, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine. (b) According to the provisions of section 203, every person deducting tax at source is required to furnish a certificate to the effect that tax has been deducted and to specify therein the amount so deducted and certain other particulars. The certificate has to be furnished in Form No.16A, within the prescribed period of one month and fourteen days to the person to whose account credit is given or to whom payment is made by any mode, as the case may be. Form No.16A can be issued by the tax-deductors on their own stationery. Detailed instructions regarding the use of these forms have been issued in the Board's Circular No.597 [F.No. 275/42/91-IT(B)], dat....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which Sub-paragraph II of this Paragraph or 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 Rs. 50,000 Rs. 1,600 plus 30 per cent of the amount by which the total income exceeds 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. 1,00,000. Surcharge on Income-tax The amount of income-tax computed in accordance with the preceding provisions of this Sub-paragraph shall— (i) in the case of every individual, Hindu undivided family or association of persons or body of individua....
X X X X Extracts X X X X
X X X X Extracts X X X X
....come-tax for assessment year 19........19........by the Assessing Officer......................Circle/Ward/District and the permanent account number allotted to me is.......................; 5. that I am resident in India within the meaning of section 6 of the Income-tax Act, 1961. ...................................................... Signature of the declarant Verification I,............................., do hereby declare that to the best of my knowledge and belief what is stated above is correct, complete and is truly stated. Verified today, the.........................day of......................19......... Place......................... ............................... Signature of Declarant Notes : 1. @ Give complete postal address. 2. The declaration should be furnished in duplicate. 3. *Delet....