Deduction for expenses on commission payable to agents appointed under the Standardised Agency System for Government securities and the agents of Post Office Time Deposits and Unit Trust of India

1. The agents of Standardised Agency System, Post Office Time Deposits and Unit Trust of India, have drawn the attention of the Board to the fact that where no detailed accounts are maintained and the gross commission received by them is less than Rs. 60,000, the benefit of an ad hoc deduction for expenses, at the rate of 50 per cent of the gross receipts of commission, is available to the authorised agents of Unit Trust of India and the agents of the following securities :—

   (i)   National Savings Certificates II Issue;

  (ii)   National Savings Certificates VI Issue;

  (iii)   National Savings Certificates VII Issue;

  (iv)   Social Securities Certificates; and

   (v)   Post Office Time Deposits.

2. In view of the discontinuance of some of the above certificates and the notification of new schemes, the aforesaid agents have requested that the currently notified schemes, as listed in paragraph 3 below, may be allowed the benefit of the same ad hoc deduction.

3. The Board has considered these representations and has decided that the benefit of an ad hoc  deduction, at the rate of 50 per cent of the gross receipts of commission, be given to the authorised agents of Unit Trust of India and the agents of the following securities :—

    (1)   National Savings Certificates VIII Issue;

    (2)   Social Securities Certificates;

    (3)   Post Office Time Deposit Accounts;

    (4)   Post Office Recurring Deposit Accounts;

    (5)   National Savings Scheme, 1987;

    (6)   Post Office Monthly Income Account Scheme;

    (7)   Kisan Vikas Patra;

    (8)   Public Provident Fund Accounts; and

    (9)   Deposit Scheme for Retiring Government Employees, 1989.

Circular : No. 594, dated 27-2-1991.

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Category : Income Tax (26352)
Type : Circulars (7626) Notifications/Circulars (31072)

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