1050. Instructions for deduction of tax at source from dividends during financial year 1974-75 at the rates specified in Part II of First Schedule to Finance Act, 1974

Under section 194, the principal officer of an Indian company or a company which has made the prescribed arrangements for the declaration and payment of dividends (including dividends on preference shares) within India is required before making any payment in cash or before issuing any cheque or warrant in re­spect of any dividends or before making any distribution or payment to a shareholder of any dividend within the meaning of sub-clauses (a) to (e) of clause (22 ) of section 2, to deduct income-tax thereon at the rates in force. The rates for the financial year 1974-75 specified in Part II of the First Schedule to the Finance Act, 1974 are as follows :

 In the case of a person other than a company—
(a) where the person is resident
21 per cent
2 per cent
(b) where the person is not resident in India
30 per cent
3 per cent
income-tax and surcharge on 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, 1974, if such income had been the total income,
whichever is higher.

II. In the case of a company—

where the company is a domestic company
22 per cent
1 per cent;
where  the  company  is not a domestic company
24.5 per cent
1.225 per cent

Circular : No. 139 [F. No. 275/51/74-ITJ], dated 21-6-1974

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Category : Income Tax (27864)
Type : Circulars (7805) Notifications/Circulars (32176)

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