Section 193 l Interest on securities

1005. Whether instructions issued in 1966 to bar person responsible for paying interest from taking cognizance of tax exemption or abatement certificate issued by ITO in favour of beneficial owner of securities held by banking companies, etc., on behalf of their constituents

1. In Board’s Circular No. 2-P(XXXIV-4) of 1966, dated 16-5-1966, instructions were issued that where Government securities are registered in the name of a banking company, tax should be deducted at source from the interest at the “rates in force” applicable to the banking company irrespective of the status of the beneficial owner of the securities.

2. A question has been raised as to whether these instructions bar the person responsible  for paying “interest on securities” from taking cognizance of tax exemption or abatement certificate issued by the Income-tax Officer under section 197(1), in favour of the beneficial owner of the securities. Section 199 provides that any tax deducted from “interest on securities” and paid to the Central Government shall be treated as a payment of tax on behalf of the owner of the securities. The expression “owner of the securities” occurring in section 199 would include a beneficial owner as well. Thus, a person who holds securities not in his own name but in the name of a collecting bank is entitled to apply for the grant of an abatement or exemption certificate under section 197(1). If the Income-tax Officer is satisfied, inter alia, on the basis of the application and other evidence adduced before him, that the applicant is the beneficial owner and that the collecting bank is only the nominal holder of the securities on behalf of the applicant, he will grant the appropriate certificates. At the time of payment of interest on such securities, it will be in order for the Public Debt Office to deduct tax at the rate specified in the certificates or deduct no tax, as the case may be.

3. Circular No. 2-P(XXXIV-4) of 1966 should be treated as modified to the extent mentioned above.

Circular : No. 2 [F.No. 1/164/68-TPL], dated 6-2-1969.

1006. Procedure for deduction of tax at source from interest on securities registered in the name of bank on behalf of its constituents

Clarification 1

1. Reference is invited to the Board’s Circular No.13(LXXVI-30), dated 4-7-1959 [Clarification 2] regarding the procedure for deduction of tax at source from interest on Government securities registered in the name of a bank on behalf of its constituents. The procedure laid down in that circular envisaged deduction of tax from such interest at the “rates in force” applicable to the beneficial owners of the securities and  the furnishing of separate certificates of tax deducted in respect of interest ultimately payable to each such beneficial owner.

12. Certain legal and practical difficulties in following the above-mentioned procedure have been brought to the notice of the Board. After careful consideration of these difficulties it has been decided that where Government securities are registered in the name of a banking company, tax will be deducted at source from the interest at the “rates in force” applicable to the banking company without regard to the status of the beneficial owner of the securities. The tax deduction  certificate under section 203 will also be furnished to the banking company.

3. On receipt of the tax deduction certificate under section 203, the banking company should issue a separate sub-divided certificate of deduction of tax at source to each of its constituents on whose behalf it has collected the interest. Such sub-divided tax deduction certificates should be issued in the form annexed to this circular. The forms may be got printed, serially numbered and their counterfoils preserved by banking companies for being produced before the Income-tax Officer concerned, if necessary.

4. A similar procedure should be followed in the case of securities registered in the name of executor or trustee companies on behalf of their constituents.

5. These instructions will apply mutatis mutandis to the deduction of tax at source from interest on debentures or other securities for money issued by or on behalf of a local authority or a company or a corporation established by a Central, State or Provincial Act.

Circular : No. 2-P(XXXIV-4), dated 16-5-1966.

Annex-Form of certificate to be issued by a banking company
or executor or trustee company collecting interest
on securities on behalf of a constituent

We hereby certify that interest on the various securities specified on the reverse was collected by us on behalf of............................................................................................................... .......................................................................................................................................................

[name, address and status of the beneficial owner]

and that we received payment or were credited with the proceeds thereof(less tax) as stated on the reverse, amounting to Rs. ....................

The securities and interest specified are covered by a certificate(s) issued to the bank/company under section 203 of the Income-tax Act, 1961, particulars of which are noted in the remarks column of the form on the reverse [see below].

     

 

Signature

Date............................

.....................

 

Address

 

........................

[To be signed by the claimant]

I hereby certify that the securities on which interest as specified above has been received are my own property/property of..................................................................................

[name of the company]      

of which I am the Principal Officer and were in the possession of...................at the time when the tax was deducted.

 

Signature

Date............................

........................

Notes :

   1.  Delete inappropriate words.

   2.  The securities are to be produced when required in support of any claim.

   3.  In case you desire to claim a refund of the whole or any part of the tax deducted as shown above, on the ground that your total annual income is below the taxable limit, or is liable to income-tax at a rate which is less than the rate at which tax has been deducted, you should send this certificate to the Income-tax Officer direct, with an application  in the prescribed form obtainable from that officer.

Reverse of form - schedule of securities

Sl. No.

Name of Public Debt Office/treasury/company/local authority/corporation paying the interest

No. and description of securities and face value

Date of payment of interest

Period to which interest relates

Amount of interest

Tax deducted under section 193

Net amount received

Remarks

 

 

 

 

 

 

IT

SC

Total

 

 

1

2

3

4

5

6

7

8

9

10

11

 

 

 

 

 

 

 

 

 

 

 

 

 

Note : In the remarks column enter the numbers and dates of the original certificate of deduction of tax from the interest issued to the banking company/executor or trustee company.

Clarification 2

1. In the Reserve Bank of India Circular No. CO Dt. Admn. 6/59/1633, dated 6-5-1959 [Clarification 3], instructions have been given to the various Public Debt Offices that when a bank gives a declaration that certain securities are held by it on behalf of its constituents, tax should be deducted from the interest on such securities at the rates applicable to the status of the constituents. The Central Board of Revenue have concurred in these instructions.

2. With a view to facilitating the correct deduction of tax with reference to the assessable class and status of the constituent and the expeditious disposal of the claim for the credit or refund of taxes deducted at source,the following procedure1 is prescribed :

1. A separate declaration should be given by the Bank, in respect of each constituent, whose securities are held by it, furnishing therein, (a) his name and address, (b) the details of the securities held on his behalf, and (c) the information regarding his status relevant for the purpose of tax deduction.

2. The Public Debt Office or the Treasury concerned where the securities in question are presented by the bank for collection of interest, should issue a separate certificate of tax deduction in respect of each constituent for whom the bank has furnished a declaration.

3. The certificate should be issued in the name of the bank but it should be indicated in the certificate that the interest is collected by the bank on behalf of its constituent and the name, address and residential status of the constituent should also be given in the certificate.

4. The certificate obtained by the bank for each of its constituents must be submitted in original to the Income-tax Officer concerned along with claim for refund or credit in respect of the tax deducted.

Circular : No. 13 (LXXVI-30), dated 4-7-1959.

Clarification 3

1. Please refer to paragraph 4 of the Draft Circular to all Treasury Officers forwarded with the Central Board of Revenue Letter F. No. 48(1)IT/59, dated 21-3-1959, in terms of which super tax will require to be deducted by the Public Debt Offices at different rates while paying interest on securities to the following categories of holders :

(a)  an Indian company or a company which has made the prescribed arrangements for the declaration and payment of dividends within India,

(b)  a company which is neither an Indian company nor a company which has made the  prescribed arrangements for the declaration and payment of dividends within India, and

  (c)  a person other than a company whom the Public Debt Office has no reason to believe to be a resident in the taxable territories.

N.B. : For the definition of “company”, please see section 2(5A) of the 1922 Act.

2. You may, therefore, issue necessary instructions for the guidance of the staff concerned (including Securities Department) to ensure that super tax is deducted at the appropriate rate  from interest on securities held by such parties. It will be seen that for the first time interest on securities held by resident companies has been made liable to deduction of super tax at source.

3. In the case of securities held by a company or stock certificates held by persons other than banks, it would be possible for the Public Debt Office to ascertain the status of the holders by reference to the Power Register or the registered addresses. In the case of Government promissory notes and stock certificates standing in the name of the banks, it will, however, not be possible to make out whether the security is the bank’s own property or is held by it on behalf of a customer and if it is held on behalf of a customer, the precise status of such customer for the purpose of tax. It will, therefore, be necessary to ascertain this information from the concerned banks.

4. In the case of stock certificates standing in favour of banks and the balances held in their SGL Accounts, you may request such banks to advise you immediately the full particulars of stocks certificates held by them on behalf of :

(a)  an Indian company or a company which has made the prescribed arrangements for the declaration and payment of dividends within India,

(b)  a company which is not an Indian company and has not made the prescribed arrangements for the declaration and payment of dividends within India, and

  (c)  a person other than a company whom they have no reason to believe to  be resident in taxable territories.

They should also confirm that all other stock certificates held by them are so held on account of persons other than companies resident in “taxable territories”, as defined in the Income-tax Act. Similar declaration and confirmation should be called for in respect of securities held by banks in their SGL Account under constituents’ holdings. As it is possible that bank’s SGL Account though not designated as “Constituents’ holdings” may include securities which are not the bank’s own  property, it would be safe to take a certificate in respect thereof also.

5. As regards Government promissory notes presented to you for withdrawal of interest, the notes presented by holders other than banks will cause no difficulty and income-tax and super tax or both should be deducted according to the status of the holder. In case of any doubt, the holder may be asked to give a specific declaration regarding his status  for the purpose. In case of Government promissory notes received from banks, however, it would be necessary for them to give declaration regarding the status of the constituents on whose behalf they are held by them. In case no such declaration accompanies the notes, tax should be deducted treating the securities as the bank’s own holdings.

6. In case of doubt with regard to the status of any holder, a reference may be made to the local income-tax authorities.

Circular : No. C.O.Dt. Admn. 6/59/1633, dated 6-5-1959, from Reserve Bank of India.

1007. Whether non-resident person (corporate as also  non-corporate) owning 4 per cent National Defence Loan, 1968 and 43/4 per cent National Defence Loan, 1972, are entitled to receive interest thereon without deduction of tax at source

1. A question has arisen whether the provisions of paragraph 5 of the Ministry of Finance (Department of Economic Affairs) Notification No. 4(28) W&M/65, dated 19-10-1965, which lays down, inter alia, that non-residents will be exempt from tax under the Income-tax Act, on the interests on the above-mentioned loans held by them, has the effect to exempting the  interest on these loans from deduction of tax at source under section 193, where these loans are held by non-resident persons, and, if so, whether foreign banks are entitled to receive the interest on those loans without deduction of tax at source even where these are held by the bank on behalf of a constituent. The position in the matter is stated in the following paragraphs.

2. By virtue of the Ministry of Finance (Department of Revenue) Notification (Income-tax) No. SO 3331, dated 19-10-1965, issued under clause (4) of section 10 non-residents are eligible for exemption from income-tax on their income by way of interest on 4¼ per cent National Defence Loan, 1968 and 4¾ per cent National Defence Loan, 1972. As a corollary to this position non-resident persons (corporate as also non-corporate) owning  these loans are entitled to receive the interest thereon without deduction of tax at source.

3. Resident persons are chargeable to income-tax on their  income by way of interest on the above-mentioned loans. However clause (ia) of the proviso to section 193 exempts from deduction of tax at source the interest on these loans where this is payable to a resident individual. Where the interest is payable to residents who are not individuals (e.g., companies),tax is deductible at source from such interest.

4. In view of the position stated in the preceding paragraphs, where the above-mentioned loans are registered in the name of a non-resident bank, no tax is deductible at source from the interest if the beneficial ownership over the securities vests in the bank itself or in any of its  constituents who is a non-resident. The same position obtains where the securities are deposited in a resident bank on behalf of a constituent who is resident individual but not where such constituent is a resident person other than an individual (e.g., a resident company). In the latter case, tax will be deductible at source under section 193 from the interest on these securities.

5. Where a foreign bank holding 4¼ per cent National Defence Loan, 1968, or 4¾ per cent National Defence Loan, 1972, claims that it is entitled to receive payment of the interest on these loans without deduction of tax at source, it will be required to furnish to the Public Debt Office a declaration as to the beneficial ownership of these securities. Where the securities are beneficially owned by the bank itself or by a non-resident constituent of the bank, the interest will be paid without deduction of tax at source. Where the securities are beneficially owned by a resident constituent of the foreign bank, the declaration should further state whether the constituent is an individual or a person other than an individual (e.g., firm, company, etc.). Where the beneficial owner, according to this declaration,is a resident individual, the interest will be paid without deduction of tax at source. Where the beneficial owner is a resident person other than an individual, tax will be deducted at source from the interest on these securities. The Public Debt Offices of the Reserve Bank of India have been informed of the position stated above.

Circular : No. 13 [F. No. 12/224/68-ITCC], dated 14-4-1969.

1008. Clarification regarding payment of income by way of interest on securities and rent made to Regimental Funds or Non-public Fund established by Armed Forces of Union for welfare of past and present members of such forces or their dependants, whose income is exempt under section 10(23AA)

1. The issue of deduction of income-tax at source under section 193 and section 194-I of the Income-tax Act from any income received by any person on behalf of any Regimental Fund or Non-public Fund established by the Armed Forces of Union for the welfare of past and present members of such forces or their dependants, has been brought to the notice of the Board. Representations have also been received on behalf of Regimental Funds and Non-public Fund established by the Armed Forces.

2. The matter with regard to regimental fund or non-public fund established by Armed Forces has been examined in the Board. Since the income of these organisations is exempt under section 10 (23AA) of the Income-tax Act, it has been decided that no tax may be deducted at source under sections 193 and 194-I from the income of such Funds.

Circular : No. 735, dated 30-1-1996.

1009. Whether in case of a provident fund, whose income is exempt under section 10(25)(ii), established under scheme under Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, income by way of interest on securities of Central and State Governments may be paid to such provident funds without deduction of income-tax at source

1. Representations have been received for grant of exemption from the requirement of deduction of income-tax at source under section 193 of the Income-tax Act on the payment of income by way of interest on securities in case of provident funds established under a scheme framed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 whose income is exempt under section 10(25)(ii) of the Income-tax Act, 1961.

2. The matter has been examined by the Board and it has been decided that in the case of a provident fund, whose income is exempt under section 10(25)(ii), established under a scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, the income by way of interest on securities of Central and State Governments may be paid to such provident funds without deduction of income-tax at source. The provisions of this circular will be applicable from current financial year 1995-96 onwards.

Circular : No. 741, dated 18-4-1996.

1010. Payment of income by way of interest on securities to Ramakrishna Math and Ramakrishna Mission whose income is exempt under section 10(23C)(iv)

1. Representations have been received for grant of exemption from the requirement of deduction of income-tax at source under section 193 of the Income-tax Act on the payment of income by way of interest on securities to Ramakrishna Math and Ramakrishna Mission whose income is exempt under clause (iv) of section 10(23C) of the Income-tax Act, 1961.

2. The matter has been examined by the Board and it has been decided that in the case of Ramakrishna Math and Ramakrishna Mission whose income is exempt under clause (iv) of section 10(23C) of the Income-tax Act, the income by way of interest on securities of Central and State Governments may be paid to the Ramakrishna Math and Ramakrishna Mission without deduction of income-tax at source. The provisions of this circular will be applicable from the current financial year.

Circular : No. 745, dated 19-7-1996.

1011. Exemption from requirement of deduction of income-tax at source on payment of income to Ramakrishna Math and Ramakrishna Mission whose income is exempt under section 10(23C)(iv)

1. Representations have been received for grant of exemption from the requirement of deduction of income-tax at source under sections 193, 194A and 194K of the Income-tax Act on the payment of incomes to Ramakrishna Math and Ramakrishna Mission whose income is exempt under sub-clause (iv) of section 10(23C) of the Income-tax Act, 1961.

2. The matter has been examined by the Board and it has been decided that in the case of Ramakrishna Math and Ramakrishna Mission whose income is exempt under sub-clause (iv) of section 10(23C) of the Income-tax Act, the incomes by way of (i) interest on securities of the Central and State Governments, (ii) interest other than ‘income by way of interest on securities’, and (iii) income in respect of units of a Mutual Fund specified under section 10(23D) or of the Unit Trust of India may be paid to the Ramakrishna Math and Ramakrishna Mission without deduction of income-tax at source. The provisions of this Circular shall be applicable from the current financial year.

Circular : No. 3/2002, dated 28-6-2002.

1012. Exemption from requirement of deduction of income-tax at source on payment to Ramakrishna Math and Ramakrishna Mission, Kolkata, whose income is exempt under section 10(23C)(iv) of the Income-tax Act, 1961

1. Vide  Circular No. 3/2002, CBDT had allowed Ramakrishna Math and Ramakrishna Mission, Kolkata, to receive incomes without tax deduction at source under sections 193, 194A and 194K. In para 2 of the said Circular it has been stated that the incomes by way of interest on securities of the Central and State Governments may be paid to the said assessees without tax deduction at source.

2. It is further clarified that interest on all securities covered under section 193 may be paid to Ramakrishna Math and Ramakrishna Mission without tax deduction at source. These securities shall also include securities of Central and State Governments already specified vide Circular No. 3/2002.

Circular : No. 11/2002, dated 22-11-2002.

1013. Payment to Shri Ram Chandra Mission, Chennai, whose income is exempt under section 10(23C) of the Income-tax Act, 1961

The matter regarding grant of exemption from deduction of income-tax at source under sections 193, 194, 194A and 194K of the Income-tax Act on the payment of incomes to Shri Ram Chandra Mission, Chennai, whose income is exempt for assessment years 2002-03 to 2004-05 under section 10(23C)(iv) of the Income-tax Act, 1961, has been examined by the Board.

2. It has been decided by the Board that in the case of Shri Ram Chandra Mission, Chennai, the incomes by way of—

  (i)  Interest on securities,

(ii)  Dividends,

(iii)  Interest other than ‘income by way of interest on securities’, and

(iv)  Income in respect of units of a Mutual Fund specified under section 10(23D) or of the Unit Trust of India

may be paid to the Mission without deduction of income-tax at source. The provisions of this Circular shall be applicable for the financial years 2002-03 and 2003-04 (assessment years 2003-04 and 2004-05).

Circular : No. 2/2003, dated 11-3-2003.

1014. Payment to World Renewal Spiritual Trust, Mumbai whose income is exempt under section 10(23C) of the Income-tax Act, 1961

The matter regarding grant of exemption from deduction of income-tax at source under sections 193, 194A and 194K of the Income-tax Act on the payment of incomes to World Renewal Spiritual Trust, Mumbai whose income is exempt for assessment years 2002-03 to 2004-05 under section 10(23C)(vi) of the Income-tax Act, 1961, has been examined by the Board.

2. It has been decided by the Board that in the case of World Renewal Spiritual Trust, Mumbai the incomes by way of—

  (i)  Interest on securities,

(ii)  Interest other than ‘income by way of interest on securities’, and

(iii)  Income in respect of units of a Mutual Fund specified under section 10(23D) or of the Unit Trust of India

may be paid to the Trust without deduction of income-tax at source. The provisions of this Circular shall be applicable for the financial years 2002-03 and 2003-04 (assessment years 2003-04 and 2004-05).

Circular : No. 3/2003, dated 11-3-2003.

1015. Debentures of Thanthai Periyar Transport Corporation Ltd. specified under clause (iib) of proviso to the section for the purposes of non-deduction of tax at source from interest payable thereon

In exercise of the powers conferred by clause (iib) of the proviso to section 193 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies, for the purposes of the said clause, the debentures, issued before the date of publication of this notification in the Official Gazette, and the debentures to be issued after such date, by the Thanthai Periyar Transport Corporation Limited, Villupuram, as a part of the Workers’ Participation Scheme of the Government of Tamil Nadu :

Provided that—

(a)  such debentures are not guaranteed by any Government as to repayment of the principal or payment of interest;

(b)  such debentures are issued only to individuals including two or more individuals jointly ;

  (c)  such debentures are issued subject to the condition that they cannot be transferred to any person other than those mentioned in clause (b);

(d)  such debentures carry interest at a rate not exceeding twelve per cent per annum ; and

  (e)  the aggregate amount of such interest income, credited or paid, or likely to be credited or paid, during a financial year in respect of each employee or former employee, does not exceed five hundred rupees.

Nothing contained in this notification shall apply to a case where the income from debentures, together with the income from salary, exceeds the minimum taxable limit.

Notification : No. SO 520, dated 19-2-1980.

1016. Debentures issued by State Electricity Boards, Aero Industries Corporations, Housing Boards, Co-operative Processing and Marketing Societies and other approved State sponsored institutions specified under clause (iib) of proviso to the section for the purposes of non-deduction of tax at source from interest payable thereon

See Notification issued under section 80L.

1017. Debentures of Transport and Engineering Corpn. specified under clause (iib) of proviso to the section for the purposes of non-deduction of tax at source from interest payable thereon

In exercise of the powers conferred by clause (iib) of the proviso to section 193 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies, for the purposes of the said clause, the debentures issued before the date of publication of this notification in the Official Gazette, and the debentures to be issued after such date, by the Transport and Engineering Corporations of Tamil Nadu specified in the Table hereto annexed, as a part of the Workers’ Participation Scheme of the Government of  Tamil Nadu :

Provided that—

(a)  such debentures are not guaranteed by any Government as to repayment of the principal or payment of interest ;

(b)  such debentures are issued only to individuals including two or more  individuals jointly ;

  (c)  such debentures are issued subject to the condition that they cannot be transferred to any person other than those mentioned in clause (b);

(d)  such debentures carry interest at a rate not exceeding twelve per cent  per annum ; and

  (e)  the aggregate amount of such interest income, credited or paid, or likely to be credited or paid, during a financial year in  respect of each employee or former employee, does not exceed five hundred rupees.

2. Nothing contained in this notification shall apply to a case where the income from debentures, together with the income from salary, exceeds the minimum taxable limit.

Table

   1.  Pallavan Transport Corporation Limited, Madras

   2.  Pandiyan Roadways Corporation Limited, Madurai

   3.  Cheran Transport Corporation Limited, Coimbatore

   4.  Cholan Roadways Corporation Limited, Kumbakonam

   5.  Anna Transport Corporation Limited, Salem

   6.  Kattabomman Transport Corporation Limited, Nagercoil

   7.  Pallavan Engineering Corporation Limited, Madras

   8.  Madurai Pandiyan Engineering Corporation Limited, Madurai

   9.  Cheran Engineering Corporation Limited, Pollachi

10.  Cholan Engineering Corporation Limited, Kumbakonam

11.  Anna Engineering Corporation Limited, Salem

Notification : No. SO 1434, dated 5-3-1979.

1018. Bonds of public sector companies specified under clause (iib) of proviso to the section for the purposes of non-deduction of tax at source from interest payable thereon

In exercise of the powers conferred by clause (iib) of the proviso  to section 193 of the Income-tax Act, 1961, the Central Government hereby specifies the following bonds of Public Sector Companies :

Particulars

Notification1

 

 

No.

Date

REC-13th Series Bonds issued by the Rural Electrification Corpn. Ltd., New Delhi

SO

2611

16-7-1986

14 per cent Secured Non-Convertible Bonds, issued by the Neyveli Lignite Corpn. Ltd., Neyveli, Tamil Nadu

SO

2612

16-7-1986

14 per cent Secured Redeemable NTPC Bonds, 1986, First Series, issued by the National Thermal Power Corpn. Ltd., New Delhi

SO

2613

16-7-1986

14 per cent Secured Redeemable Non- Convertible Bonds, 1986, ‘A’ Series, issued by the Indian Telephone Industries Ltd., Bangalore

SO

2614

16-7-1986

HDFC 12.5 per cent Bonds (1992-1996); HDFC 12.5 per cent Bonds (1995) and HDFC 12.5 per cent Bonds (1996) issued by the Housing Development Finance Corpn. Ltd., Bombay

SO

3829

29-10-1986

7-year 14 per cent Secured Redeemable Non-Convertible Bonds (A-Series) issued by the National Hydro-electric Power Corpn. Ltd., New Delhi

SO

3830

29-10-1986

1986 IPCL 14 per cent Secured Redeemable Non-Convertible Bonds issued by the Indian Petrochemicals Corpn. Ltd., Baroda

SO

3831

29-10-1986

HDFC 12.5 per cent Bonds (1997) issued by the Housing Development Finance Corporation Ltd., Bombay

SO

936

4-3-1987

14 per cent Secured Redeemable NTPC Bonds, 1986 Second Series issued by the National Thermal Power Corporation Ltd., New Delhi

SO

1667

10-6-1987

7-year 14 per cent Secured Redeemable Non-Convertible Telephone Bonds—T86 Series—First issue issued by the Mahanagar Telephone Nigam Ltd., New Delhi

SO

1940

3-7-1987

HDFC 12.5 per cent Bonds, 1997(A) issued by the Housing Development Finance Corporation Ltd., Bombay

SO

2648

28-8-1987

13 per cent Secured Redeemable Non-Convertible Bonds (B Series) issued by the National Hydro-electric Power Corporation Ltd., New Delhi

SO

3255

22-10-1987

13 per cent and 14 per cent Secured Redeemable Non-Convertible Bonds 1987 (B Series) issued by the Indian Telephone Industries Ltd., Bangalore

SO

3396

7-11-1987

13 per cent Secured Redeemable Non-Convertible Bonds (B Series) issued by the Neyveli Lignite Corporation Ltd., Neyveli

SO

133

21-11-1987

1987-88 IPCL 13 per cent Secured Redeemable Non-Convertible Bonds issued by the Indian Petrochemicals Corpn. Ltd., Vadodara, Gujarat

SO

669

12-1-19881

13 per cent Secured Redeemable Non-Convertible (A Series) HPF Bonds issued by Hindustan Photo Films Mfg. Co. Ltd., Ootacamund

SO

670

12-1-19881

12.5 per cent HDFC Bonds, 1997 (B) issued by the Housing Development Finance Corpn. Ltd., Bombay

SO

671

12-1-19881

13 per cent Secured Redeemable Bonds (Series I) issued by the Nuclear Power Corporation of India Ltd.

SO

1100

2-2-1988

7 year 13 per cent Secured Redeemable Non-Convertible Bonds (2nd Issue) issued by the Mahanagar Telephone Nigam Ltd., New Delhi

SO

 279(E)

24-3-1988

7-year 13 per cent (Taxable) Secured Redeemable Non-Convertible NTPC Bonds (III Public issue) issued by the National Thermal Power Corpn. Ltd.

SO

 315(E)

28-3-1988

7-year 13 per cent (Taxable) Secured Redeemable Non-Convertible Bonds issued by the Housing & Urban Development Corpn. Ltd.

SO

 395(E)

15-4-1988

7-year 13 per cent (Taxable) Secured Redeemable Non-Convertible Bonds (C Series) issued by the National Hydro-electric Power Corpn. Ltd.

SO

 528(E)

27-5-1988

12 per cent HDFC Corporate Bonds - 1st Series issued by the Housing Development Finance Corporation Ltd.

 

8004

13-6-1988

12.5 per cent HDFC Bonds, 1998 issued by the Housing Development Finance Corporation Ltd.

SO

2278

18-6-1988

12.5 per cent HDFC Bonds, 1998(A) issued by the Housing Development Finance Corporation Ltd., Bombay

SO

2761

28-7-1988

12.5 per cent HDFC Bonds, 1998(B) issued by the Housing Development Finance Corporation Ltd., Bombay

SO

3427

10-9-1988

12.5 per cent HDFC Bonds, 1999 (Xth Issue) issued by the Housing Development Finance Corporation Ltd., Bombay

SO

3676

18-11-1988

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible Bonds (C Series) issued by the Neyveli Lignite Corporation Ltd.

SO

133(E)

17-2-1989

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible HUDCO Shelter Bonds (Series II) issued by the Housing and Urban Development Corporation Ltd.

SO

260(E)

4-4-1989

12 per cent HDFC Corporate Bonds - (II Series) issued by the Housing Development Finance Corporation Ltd., Bombay

SO

2098

21-7-1989

12.5 per cent HDFC Bonds, 2000 (11th issue) issued by the Housing Development Finance Corporation Ltd., Bombay

SO

2099

21-7-1989

11.5 per cent National Housing Bank Bonds, 2009 (First Series) issued by National Housing Bank, New Delhi

SO

2213

1-8-1989

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible Bonds (private placement) issued by the Nuclear Power Corporation

SO

 667(E)

23-8-1989

7-Year 13 per cent (Taxable) Secured Re- deemable Non-Convertible IPCL Bonds issued by the Indian Petrochemical Corporation Ltd.

SO

 687(E)

31-8-1989

7-Year 13 per cent (Taxable) HUDCO’s Public Sector Shelter Bonds (Series III) issued by the HUDCO

SO

 696(E)

5-9-1989

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible NLC Bonds (D Series) issued by the Neyveli Lignite Corporation Ltd.

SO

 774(E)

29-9-1989

10-Year 13 per cent (Taxable) Secured Non-Convertible Bonds, issued by the Hindustan Zinc Ltd.

SO

 1047(E)

14-12-1989

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible NPC Bonds (III Series) issued by NPC

SO

 132(E)

9-2-1990

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible Health Bonds (A Series), issued by the Hindustan Antibiotics Ltd.

SO

 219(E)

13-3-1990

13 per cent HDFC Trust Bonds - Series A issued by the Housing Development Finance Corpn. Ltd., Bombay

SO

1131

21-3-1990

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible Telephone Bonds - 1990 (4th Issue), issued by the Mahanagar Telephone Nigam Ltd.

SO

 424(E)

31-5-1990

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible NLC Bonds (E Series), issued by the Neyveli Lignite Corporation Ltd.

SO

 430(E)

31-5-1990

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible CIL Bonds, issued by the Coal India Ltd.

SO

 434(E)

31-5-1990

17-Year 13 per cent (Taxable) SCICI Bonds (Series 5) issued by Shipping Credit and Investment Company of India Ltd.

SO

725

18-9-1990

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible Bonds issued by Hindustan Zinc Ltd.

SO

759

5-10-1990

NHB 9 per cent Capital Bonds, issued by National Housing Bank

SO

 781(E)

11-10-1990

(a) 12.5 per cent HDFC Bonds 2001 (XIII Issue)

 

 

 

(b) 13 per cent HDFC Trust Bonds - Series ‘B’ issued by the Housing Development Finance Corporation Ltd., Bombay

SO

3413

20-10-1990

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible Bonds issued by the Damodar Valley Corpn.

SO

913

27-11-1990

11.5 per cent National Housing Bank Bonds, 2009 (Second Series) issued by the National Housing Bank, New Delhi

SO

76

8-12-1990

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible NTPC Bonds (VI Issue) (Private Placement) issued by the National Thermal Power Corporation Ltd.

SO

96(E)

13-2-1991

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible Bonds, issued by Visakhapatnam Steel Project

SO

 119(E)

22-2-1991

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible CIL Bonds-Iind Series, issued by the Coal India Ltd.

SO

 122(E)

22-2-1991

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible NLC Bonds (F-Series) issued by the Neyveli Lignite Corporation Ltd.

SO

 139(E)

27-2-1991

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible Bonds (F-Series) (Private Placement) issued by the National Hydroelectric Power Corporation Ltd.

SO

 142(E)

27-2-1991

11.5 per cent National Housing Bank Bonds, 2010 (Third Series) issued by the National Housing Bank, New Delhi

SO

944

8-3-1991

7-Year 13 per cent (Taxable) Non-Cumulative Secured Redeemable Bonds (IV Series), issued by the Nuclear Power Corporation of India Ltd., Bombay

SO

 409(E)

18-6-1991

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible Telephone Bonds, 1991 (5th Issue), issued by the Mahanagar Telephone Nigam Ltd., New Delhi

SO

 412(E)

19-6-1991

7-Year 13 per cent (Taxable) Secured Redeemable Non-Convertible Bonds (Series I), issued by the Housing and Urban Development Corporation Limited

SO

 614(E)

19-9-1991

7-Year 13 per cent (Taxable) Non-Cumulative Secured Redeemable Bonds 4th Series D(II), issued by the Nuclear Power Corporation of India Limited, Bombay

SO

 721(E)

24-10-1991

14.25%, Unsecured Non-convertible Redeemable Subordinated Bonds [Series-II] issued by the Dena Bank, Mumbai

SO

2396

16-8-1999

13.75%, Unsecured Non-convertible Redeemable Subordinated Bonds (Series-III) issued by the Dena Bank, Mumbai

SO

2397

16-8-1999

13% Unsecured Non-convertible Redeemable Subordinated Bonds (Series-IV) issued by the Dena Bank, Mumbai

SO

856

3-9-2001

NABARD Capital Gains Bonds issued by the National Bank for Agriculture and Rural Development, Mumbai

SO

1780

7-5-2002

SIDBI Capital Gains Bonds

SO

3059

11-9-2002

7.15% NHB Capital Gains Bonds, 2002, issued by the National Housing Bank, New Delhi

331/2002

28-10-2002

 

[F. No. 275/83/2002-IT(B)]

REC 54 EC Capital Gains Tax Exemption

359/2002

2-12-2002

Bonds issued by the Rural Electrification Corporation Limited, New Delhi

[F. No. 275/94/2002-IT(B)]

 

 

“IDBI Flexibonds 2003-2004” issued by Industrial Development Bank of India

SO

258(E)

19-2-2004

NHAI Non-convertible Redeemable Bonds with benefits under section 54EC of the Income-tax Act, 1961 issued by National Highways Authority of India, New Delhi

SO

307(E)

5-3-2004

 

 

 

 

 

1019. Bonds of IDBI specified under clause (iib) of proviso to the section for the purposes of non-deduction of tax at source from interest payable thereon

In exercise of the powers conferred by clause (iib) of the proviso to section 193 of the Income-tax Act, 1961, (43 of 1961), the Central Government hereby specifies the bonds issued by the Industrial Development Bank of India, Bombay, as specified in the Table hereto annexed, for the purposes of the said clause :

TABLE

Particulars

Notification

 

 

No.

Date

Series

No. 8

6%

IDBI

Bonds

1987

 

 

 

No. 9

6%

IDBI

Bonds

1987

 

 

 

No. 10

6%

IDBI

Bonds

1988

 

 

 

No. 11

6.25%

IDBI

Bonds

1988

 

 

 

No. 12

6.25%

IDBI

Bonds

1989

 

 

 

No. 13

6.25%

IDBI

Bonds

1989

 

 

 

No. 14

6.5%

IDBI

Bonds

1989

 

 

 

No. 15

6.5%

IDBI

Bonds

1990

 

 

 

No. 16

6.5%

IDBI

Bonds

1990

 

 

 

No. 17

6.75%

IDBI

Bonds

1992

 

 

 

No. 18

6.75%

IDBI

Bonds

1992

 

 

 

No. 19

6.75%

IDBI

Bonds

1992

 

 

 

No. 20

6.75%

IDBI

Bonds

1993

 

 

 

No. 21

7.25%

IDBI

Bonds

1996

 

 

 

No. 22

7.25%

IDBI

Bonds

1996

 

 

 

No. 23

7.25%

IDBI

Bonds

1996

 

 

 

No. 24

7.25%

IDBI

Bonds

1997

 

 

 

No. 25

7.5%

IDBI

Bonds

1997

 

 

 

No. 26

7.5%

IDBI

Bonds

1997

 

 

 

No. 27

7.5%

IDBI

Bonds

1997

SO

519

5-2-1987

No. 28

7.5%

IDBI

Bonds

1998

 

 

 

No. 29

8.75%

IDBI

Bonds

2000

 

 

 

No. 30

8.75%

IDBI

Bonds

2000

 

 

 

No. 31

8.75%

IDBI

Bonds

2001

 

 

 

No. 32

8.75%

IDBI

Bonds

2001

 

 

 

No. 33

9%

IDBI

Bonds

1999

 

 

 

No. 34

9%

IDBI

Bonds

1999

 

 

 

No. 35

9%

IDBI

Bonds

1999

 

 

 

No. 36

9%

IDBI

Bonds

2000

 

 

 

No. 37

9.75%

IDBI

Bonds

1998

 

 

 

No. 38

9.75%

IDBI

Bonds

1998

 

 

 

No. 39

9.75%

IDBI

Bonds

1998

 

 

 

No. 40

9.75%

IDBI

Bonds

1999

 

 

 

No. 41

11%

IDBI

Bonds

2001

 

 

 

No. 42

11%

IDBI

Bonds

2001

 

 

 

No. 43

11%

IDBI

Bonds

2001

SO

1793

10-6-1987

No. 44

11%

IDBI

Bonds

2002

SO

1794

10-6-1987

No. 45

11%

IDBI

Bonds

2002

 

7557

24-9-1987

No. 46

11%

IDBI

Bonds

2002

SO

668

12-1-1988

No. 47

11%

IDBI

Bonds

2002

SO

1831

12-5-1988

No. 48

11%

IDBI

Bonds

2003

SO

2279

21-6-1988

No. 49

11.5%

IDBI

Bonds

2008

SO

3232

28-8-1988

No. 50

11.5%

IDBI

Bonds

2008

SO

974

25-3-1989

No. 51

11.5%

IDBI

Bonds

2009

 

 

 

No. 52

11.5%

IDBI

Bonds

2009

SO

1754

1-6-1989

No. 53

11.5%

IDBI

Bonds

2009

SO

403

14-1-1990

No. 54

11.5%

IDBI

Bonds

2009

SO

1331

3-4-1990

No. 55

11.5%

IDBI

Bonds

2010

 

8689

26-6-1990

No. 56

11.5%

IDBI

Bonds

2010

SO

2702

6-8-1990

No. 57

11.5%

IDBI

Bonds

2010

SO

3468

20-10-1990

No. 58

11.5%

IDBI

Bonds

2010

SO

1165

20-4-1991

1020. Bonds of EXIM specified under clause (iib) of the proviso to the section for purposes of non-deduction of tax at source from interest payable thereon

In exercise of the powers conferred by clause (iib) of the proviso to section 193 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the bonds issued by the Export-Import Bank of India, Bombay, as mentioned in the Table hereto annexed, for the purpose of the said clause :

Provided that the benefit under the said proviso shall be admissible in the case of transfer of such bonds by endorsement or delivery, only if the transferee informs the Export-Import Bank of India by registered post within a period of sixty days of such transfer.

TABLE

Description of Bonds

1.

8.75 per cent EXIM Bonds, 2000 (First Series)

 

2.

9.00 per cent EXIM Bonds, 2000 (Second Series)

 

3.

9.75 per cent EXIM Bonds, 1999 (Third Series)

SO 672 dated 12-1-1988

4.

11.00 per cent EXIM Bonds, 2000 (Fourth Series)

 

5.

11.00 per cent EXIM Bonds, 2003 (Fifth Series)

SO 3426 dated 18-8-1988

 

11.5 per cent EXIM Bonds, 2009 (Sixth Series)

SO 1753 dated 31-5-1989

 

11.5 per cent EXIM Bonds, 2010 (Seventh Series)

SO 2701 dated  3-8-1990

 

11.5 per cent EXIM Bonds, 2010 (Eighth Series)

SO  943, dated 16-2-1991

1021. 3-year IDBI Capital Bonds specified under clause (iib) of the proviso to the section for the purposes of non-deduction of tax at source from interest payable thereon

In exercise of the powers conferred by clause (iib) of the proviso to section 193 of the Income-tax Act, 1961, the Central Government hereby specifies:

(a)  3-year IDBI Capital Bonds issued by the Industrial Development Bank of India, Bombay.

Notification : No. SO 1382, dated 18-5-1987.

1022. 3-year HUDCO Capital Gains Debentures specified under clause (iib) of the proviso to the section for purpose of non-deduction of tax at source from interest payable thereon

In exercise of the powers conferred by clause (iib) of the proviso to section 193 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the “3-year HUDCO Capital Gains Debentures” issued by the Housing and Urban Development Corporation Ltd., New Delhi, for the purpose of the said clause.

Notification : No. SO 673, dated 18-1-1988.

1023. Bonds of IFCI specified under clause (iib) of the proviso to the section for purposes of non-deduction of tax at source from interest payable thereon

In exercise of the powers conferred by clause (iib) of the proviso to section 193 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the bonds issued by the Industrial Finance Corporation of India, New Delhi, as specified in the Table hereto annexed for the purposes of the said clause :

Provided that the benefit under the said proviso shall be admissible in the case of transfer of such bonds by endorsement or delivery, if the transferee informs the Industrial Finance Corporation of India by registered post within a period of sixty days of such transfer.

TABLE

Description of Bonds

1.

6% Bonds, 1987 (II Series)

 

 

 

 

2.

6.25% Bonds, 1988

 

 

 

 

3.

6.25% Bonds, 1988 (II Series)

 

 

 

 

4.

6.50% Bonds, 1989

 

 

 

 

5.

6.50% Bonds, 1989 (II Series)

 

 

 

 

6.

6.75% Bonds, 1992

 

 

 

 

7.

6.75% Bonds, 1992 (II Series)

 

 

 

 

8.

7.25% Bonds, 1996

 

SO

2261

dated 31-7-1987

9.

7.25% Bonds, 1996 (II Series)

 

 

 

 

10.

7.25% Bonds, 1997

 

 

 

 

11.

7.50% Bonds, 1997

 

 

 

 

12.

7.50% Bonds, 1997 (II Series)

 

 

 

 

13.

8.25% Bonds, 1995

 

 

 

 

14.

8.75% Bonds, 2000

 

 

 

 

15.

8.75% Bonds, 2001

 

 

 

 

16.

9% Bonds, 1999

 

 

 

 

17.

9% Bonds, 1999 (II Series)

 

 

 

 

18.

9.75% Bonds, 1998 (41st Series)

 

 

 

 

19.

9.75% Bonds, 1998 (42nd Series)

 

SO

2261

dated 31-7-1987

20.

9.75% Bonds, 1999 (43rd Series)

 

 

 

 

21.

11% Bonds, 2001 (44th Series)

 

 

 

 

22.

11% Bonds, 2001 (45th Series)

 

 

 

 

23.

11% Bonds, 2002 (46th Series)

 

 

 

 

24.

11% Bonds, 2002 (47th Series)

 

 

 

 

25.

11% Bonds, 2002 (48th Series)

 

SO

992

dated 14-2-1988

26.

11% Bonds, 2003 (49th Series)

 

SO

2760

dated 17-7-1988

27.

11.5% Bonds, 2008 (50th Series)

 

 

8067

dated 11-8-1988

 

11.5% Bonds, 2008 (51st Series)

 

SO

975

dated 25-3-1989

 

11.5% Bonds, 2009 (52nd Series)

 

SO

1755

dated 1-6-1989

 

11.5% Bonds, 2009 (53rd Series)

 

 

8473

dated 23-10-1989

 

11.5% Bonds, 2009 (54th Series)

 

 

 

 

 

11.5% Bonds, 2009 (55th Series)

 

SO

3412

dated 20-10-1990

 

11.5% Bonds, 2009 (56th Series)

 

 

 

 

 

11.5% Bonds, 2010 (57th Series)

 

SO

892

dated 31-12-1992

1024. Bonds of Industrial Credit and Investment Corporation of India Ltd. specified under clause (iib) of the proviso to the section for purposes of non-deduction of tax at source from interest payable thereon

In exercise of the powers conferred by clause (iib) of the proviso to section 193 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the debentures or bonds, as the case may be, issued by the Industrial Credit and Investment Corporation of India Limited, Bombay, as listed in the Table thereto annexed, for the purpose of the said clause :

Provided that the benefit under the said proviso shall be admissible in the case of transfer of such debentures or bonds, by endorsement or delivery, only if the transferee informs the Industrial Credit and Investment Corporation of India Limited by registered post within a period of sixty days.

TABLE

 

Month of issue

Description of debentures or bonds

 

 

(1)

(2)

 

1.

August, 1975

6.25% Debentures (1990)

 

2.

May, 1976

6.25% Debentures (1991)

 

3.

September, 1976

6.25% Debentures (1992)

SO 2990, dated 28-8-1988

4.

May, 1977

6.25% Debentures (1993)

as amended by SO 1514(E),

5.

January, 1978

6.50% Debentures (1998)

dated 7-6-1989

6.

June, 1978

6.50% Debentures (1998)

 

7.

January, 1979

6.50% Bonds (1999)

 

8.

August, 1979

6.75% Bonds (1999)

 

9.

January, 1980

6.75% Bonds (2000)

 

10.

June, 1980

7.25% Bonds (2000)

 

11.

January, 1981

7.25% Bonds (2001)

 

12.

March, 1981

7.25% Bonds (2001)

 

13.

June, 1981

7.50% Bonds (2001)

 

14.

November, 1981

7.50% Bonds (2001)

 

15.

March, 1982

7.50% Bonds (2002)

 

16.

June, 1982

7.75% Bonds (2002)

 

17.

February, 1983

7.50% Bonds (1998)

 

18.

July, 1983

8.75% Bonds (2000)

SO 2990, dated 28-8-1988

19.

January, 1984

8.75% Bonds (2001)

as amended by SO 1514(E),

20.

July, 1984

9.00% Bonds (1999)

dated 7-6-1989

21.

January, 1985

9.00% Bonds (2000)

 

22.

June, 1985

9.75% Bonds (1998)

 

23.

November, 1985

9.75% Bonds (1998)

 

24.

June, 1986

11.00% Bonds (2001)

 

25.

September, 1986

11.00% Bonds (2001)

 

26.

February, 1987

11.00% Bonds (2002)

 

27.

June, 1987

11.00% Bonds (2002)

 

28.

October, 1987

11.00% Bonds (2002)

 

29.

February, 1988

11.00% Bonds (2003)

 

 

June, 1988

11.5% Bonds (2008)

SO 973, dated 7-3-1989

 

November, 1988

11.5% Bonds (2008)

 

 

November, 1988

11.5% Bonds (2009)

SO 2700, dated 26-6-1990

 

May, 1989

12.5% Debentures

8470, dated 17-10-1989

 

February, 1989

11.5% Bonds (2009)

8472, dated 23-10-1989

 

June, 1989

11.5% Bonds (2009)

 

1025. Securities of Central and State Governments specified under clause (iiia) of the proviso to the section for the purposes of non-deduction of tax at source from interest payable thereon

In exercise of the powers conferred by clause (iiia) of the proviso to section 193 of the Income-tax Act, 1961 (43 of 1961), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. SO 5651, dated the 4th December, 1985, the Central Government hereby specifies all the securities of the Central Government and the State Governments, the interest on which is payable to the following nationalised banks, that is to say, corresponding new banks as defined in section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), whose ratio of published profits to working funds is less point one per cent, namely :—

   1.  UCO Bank

   2.  United Bank of India

   3.  Dena Bank

   4.  New Bank of India

   5.  Punjab and Sind Bank

   6.  Vijaya Bank

   7.  Punjab National Bank

for the purposes of the said clause.

Notification : No. SO 744, dated 5-3-1987.

1026. Deduction of tax at source not to be made in respect of the difference payable between the redemption value and the bid price of Zero Coupon Bonds to certain classes of institutions

                                           NOTIFICATION 1

In exercise of the powers conferred by clause (iiia) of the proviso to section 193 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies, for the purposes of that clause, the difference payable between the redemption value and the bid price of Zero Coupon Bonds of five years tenure of the Government of India, issued under the scheme for sale of Zero Coupon Bonds of Government of India - by auction, vide Notification No. F. 4(5) W&M/93, dated 7th January, 1994, of the Ministry of Finance (Department of Economic Affairs) :

Provided that the said bonds are held by :

  (i)  a banking company;

(ii)  a co-operative bank;

(iii)  a public financial institution as defined in section 4A of the Companies Act, 1956 (1 of 1956);

(iv)  Discount and Finance House of India Limited;

(v)  Securities Trading Corporation of India Limited.

Notification : No. SO 66(E), dated 30-1-1995.

                                           NOTIFICATION 2

In exercise of the powers conferred by clause (iiia) of the proviso to section 193 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies, for the purposes of that clause, the difference payable between the redemption value and the bid price of Zero Coupon Bonds of 5 years tenure of the Government of India, issued under the scheme for sale of Zero Coupon Bonds of Government of India by Auction, vide Notification No. F. 4(4) W&M/94, dated January 30, 1995, of the Ministry of Finance (Department of Economic Affairs) :

Provided that the said bonds are held by :—

  (i)  a banking company;

(ii)  a co-operative bank;

(iii)  a public financial institution as defined in section 4A of the Companies Act, 1956 (1 of 1956);

(iv)  Discount and Finance House of India Limited;

(v)  Securities Trading Corporation of India Limited.

Notification : No. SO 9808 [F. No. 275/10/95-IT(B)], dated 11-7-1995.

                                           NOTIFICATION 3

In exercise of the powers conferred by clause (iiia) of the proviso to section 193 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies, for the purposes of that clause, the difference payable between the redemption value and the bid price of Zero Coupon Bonds of 5 years tenure of the Government of India, issued under the scheme for sale of Zero Coupon Bonds, 2000 of Government of India, by Auction, vide Notification No. F. 4(4) W&M/94, dated 20th July, 1995, of the Ministry of Finance (Department of Economic Affairs) :

Provided that the said bonds are held by :—

  (i)  a banking company;

(ii)  a co-operative bank;

(iii)  a public financial institution as defined in section 4A of the Companies Act, 1956 (1 of 1956);

(iv)  Discount and Finance House of India Ltd.;

(v)  Securities Trading Corporation of India Ltd.

Notification : No. SO 666(E), dated 25-7-1995.

                                           NOTIFICATION 4

In exercise of the powers conferred by clause (iiia) of the proviso to section 193 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies, for the purposes of that clause, the difference payable between the redemption value and the bid price of Zero Coupon Bonds of 5 years tenure of the Government of India, issued under the scheme for sale of Zero Coupon Bonds, 2000 (Third Series) of Government of India by Auction, vide Notification No. F. 4(2) W&M/96, dated 5th July, 1996 of the Ministry of Finance (Department of Economic Affairs) :

Provided that the said bonds are held by :—

  (i)  a banking company;

(ii)  a co-operative bank;

(iii)  a public financial institution as defined in section 4A of the Companies Act, 1956 (1 of 1956);

(iv)  Discount and Finance House of India Limited;

(v)  Securities Trading Corporation of India Limited.

Notification : No. SO 546(E), dated 31-7-1996.

                                           NOTIFICATION 5

In exercise of the powers conferred by clause (iiia) of the proviso to section 193 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies, for the purposes of that clause, the difference payable between the redemption value and the bid price of Zero Coupon Bonds of the Government of India issued under the scheme for sale of Zero Coupon Bonds, 2000 (Third Series) (Second Issue) of Government of India by auction, vide Notification No. F. 4(2) W&M/96, dated 25-9-1996 of the Ministry of Finance (Department of Economic Affairs) :

Provided that the said bonds are held by—

  (i)  a banking company;

(ii)  a co-operative bank;

(iii)  a public financial institution as defined in section 4A of the Companies Act, 1956 (1 of 1956);

(iv)  the Discount and Finance House of India Limited;

(v)  the Securities Trading Corporation of India Limited.

Notification : No. SO 174(E), dated 7-3-1997.

                                           NOTIFICATION 6

In exercise of the powers conferred by clause (iiia) of the proviso to section 193 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies all the securities of the Central Government and State Governments, interest on which is payable to,—

(a)  the State Bank as defined in clause (g) of section 2 of the State Bank of India Act, 1955 (23 of 1955); or

(b)  any subsidiary bank as defined in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959); or

  (c)  any nationalised bank, that is to say, a corresponding new bank as defined in section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), respectively for the purposes of the said clause.

Notification : No. SO 295(E), dated 3-4-1997.

Instructions for deduction of tax at source from
income from interest on securities

FINANCIAL YEAR 1994-95

1027. Instructions for deduction of tax at source from interest on securities - Rate of deduction from interest on securities during financial year 1994-95

See Direct Taxes Circulars on CD.

FINANCIAL YEAR 1993-94

1028. Instructions for deduction of tax at source from interest on securities - Rate of deduction from interest on securities during financial year 1993-94

See Direct Taxes Circulars on CD.

FINANCIAL YEAR 1992-93

1029. Instructions for deduction of tax at source from interest on securities - Rate of deduction from interest on securities during financial year 1992-93

See Direct Taxes Circulars on CD.

FINANCIAL YEAR 1991-92

1030. Instructions for deduction of tax at source from the interest on securities - Rate of tax during the financial year 1991-92

See Direct Taxes Circulars on CD.

Financial year 1990-91

1031. Instructions for deduction of tax at source from interest on securities - Rates of tax applicable during financial year 1990-91

See Direct Taxes Circulars on CD.

Financial Year 1989-90

1032. Instructions for deduction of tax at source from interest on securities - Rates of tax applicable during the financial year 1989-90

See Direct Taxes Circulars on CD.

Financial year 1988-89

1033. Deduction of tax at  source - Interest on securities - Rates of tax applicable during the year 1988-89

See Direct Taxes Circulars on CD.

Financial year 1987-88

1034. Instructions for deduction of tax at source from interest on securities during financial year 1987-88 at the rates specified in Part III of First Schedule to Finance Act, 1987

See Direct Taxes Circulars on CD.

FINANCIAL YEAR 1986-87

1035. Instructions for deduction of tax at source from interest on securities during financial year 1986-87 at the rates specified in Part III of First Schedule to Finance Act, 1986

See Direct Taxes Circulars on CD.

1036. Deduction of tax at source computed on the basis of circular of 1-6-1987 to be increased by a surcharge at the rate of 5 per cent - Effective from 16-12-1987

See Direct Taxes Circulars on CD.

FINANCIAL YEAR 1985-86

1037. Instructions for deduction of tax at source from interest on securities during financial year 1985-86 at the rates specified in Part III of First Schedule to Finance Act, 1985

See Direct Taxes Circulars on CD.

FINANCIAL YEAR 1984-85

1038. Instructions for deduction of tax at source from interest on securities during financial year 1984-85 at the rates specified in Part III of First Schedule to Finance Act, 1984

See Direct Taxes Circulars on CD.

FINANCIAL YEAR 1983-84

1039. Instructions for deduction of tax at source from interest on securities during financial year 1983-84 at the rates specified in Part III of First Schedule to Finance Act, 1983

See Direct Taxes Circulars on CD.

FINANCIAL YEAR 1982-83

1040. Instructions for deduction of tax at source from interest on securities during financial year 1982-83 at the rates specified in Part III of First Schedule to Finance Act, 1982

See Direct Taxes Circulars on CD.

FINANCIAL YEAR 1981-82

1041. Instructions for deduction of tax at source from interest on securities during financial year 1981-82 at the rates specified in Part III of First Schedule to Finance Bill, 1981

See Direct Taxes Circulars on CD.

FINANCIAL YEAR 1980-81

1042. Instructions for deduction of tax at source during financial year 1980-81 from interest on securities at the rates specified in Part III of First Schedule to Finance (No. 2) Bill, 1980

See Direct Taxes Circulars on CD.

FINANCIAL YEAR 1979-80

1043. Instructions for deduction of tax at source from interest on securities during financial year 1979-80 at the rates specified in Part III of First Schedule to Finance Act, 1979

See Direct Taxes Circulars on CD.

FINANCIAL YEAR 1978-79

1044. Instructions for deduction of tax at source from interest on securities during financial year 1978-79 at the rates specified in Part III of First Schedule to Finance Bill, 1978

See Direct Taxes Circulars on CD.

FINANCIAL YEAR 1977-78

1045. Instructions for deduction of tax at source from interest on securities during financial year 1977-78 at the rates specified in Part III of First Schedule to Finance Bill, 1977

See Direct Taxes Circulars on CD.

FINANCIAL YEAR 1976-77

1046. Instructions for deduction of tax at source from interest on securities during financial year 1976-77 at the rates specified in Part III of First Schedule to Finance Bill, 1976

See Direct Taxes Circulars on CD.

FINANCIAL YEAR 1975-76

1047. 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

See Direct Taxes Circulars on CD.

FINANCIAL YEAR 1974-75

1048. Instructions for deduction of tax at source from interest on securities during financial year 1974-75 at the rates specified in Part III of First Schedule to Finance Bill, 1974

See Direct Taxes Circulars on CD.

Financial year 1973-74

1049. Instructions for deduction of tax at source from interest on securities during financial year 1973-74 at the rates specified in Part III of First Schedule to Finance Bill, 1973

See Direct Taxes Circulars on CD.

 

 

Financial year 1972-73

1050. Instructions for deduction of tax at source from interest on securities during financial year 1972-73 at the rates specified in Part III of First Schedule to Finance Bill, 1972

See Direct Taxes Circulars on CD.

Financial year 1971-72

1051. Instructions for deduction of tax at source from interest on securities during the financial year 1971-72 at the rates specified in Part III of First Schedule to Finance (No. 2) Bill, 1971

See Direct Taxes Circulars on CD.

Financial year 1970-71

1052. Instructions for deduction of tax at source from interest on securities during financial year 1970-71 at the rates specified in Part III of First Schedule to Finance Bill, 1970

See Direct Taxes Circulars on CD.