RBI/2006-2007/424
Ref DGBA.CDD No H- 17134 / 13.01.299 / 2006 - 07 May
31, 2007 Jyeshtha 10, 1929
(Saka) The General Manager State
Bank of India and Associate Banks and
17 Nationalised Banks The
Managing Director ICICI Bank
Ltd / IDBI Bank Ltd / HDFC Bank Ltd / UTI Bank Ltd and SHCIL Dear
Sir, Income Tax Act,
1961 - Section 193 - 8 % Savings (Taxable) Bonds, 2003 - TDS
In terms of proviso
to clause (iv) of Proviso to Section 193 of the Income Tax Act, 1961 (as inserted
vide Finance Act, 2007), tax is required to be deducted at source on the interest
exceeding rupees ten thousand payable during the financial year on 8 % Savings
(Taxable) Bonds, 2003 with effect from June 1, 2007. 2.
In this connection, we forward herewith a copy of Government of India Notification
No F. 4 (10) – W & M / 2003 dated May 31, 2007 and advise you to bring
the contents of this Notification to all your offices / branches for their information
and necessary action. 3.
Please acknowledge the receipt. Yours
faithfully,
(Balu K) Deputy General Manager
Government
of India Ministry of Finance Department of Economic Affairs New
Delhi, dated May 31, 2007 NOTIFICATON 8
% Savings (Taxable) Bonds, 2003 No.F.4
(10) - W & M/2003: The Government of India, hereby notifies that pursuant
to the amendment to clause (iv) of the proviso to Section 193 of the Income Tax
Act, 1963, with effect from June 1, 2007, tax will be deducted at source on the
interest exceeding rupees ten thousand payable during the financial year on 8
% Savings (Taxable) Bonds, 2003. The
other terms and conditions of the issue of Bonds shall remain unchanged. By
Order of the President of India (L.
M. Vas) Joint Secretary to the Government of India |