Circular No
:
735
Date of Issue
:
30.1.1996
Section(s) Referred
:
194I , 193
Statute
:
Income-Tax Act


Subject: Requirement of deduction of tax at source under Section 193, read with section 194-I, of the Income-tax Act, 1961--Deduction of tax at source--Interest on securities/rent--Clarification regarding payment of income by way of interest on securities and rent made to Regimental Funds on 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) of Section 10 of Income Tax Act - reg

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.

Sd/-
Y.P.Vashishat
Under secretary to the Government of India
New Delhi.

[F.No.275/68/95-IT (B), dated 30.1.96 from CBDT]