VittSphere ONE Calculators Blog CA Prabhakar Kumar · FCA · ICAI 560762
Calculators Blog Handle my notice
Case law › Circulars › 1996 › Circular No. 745
CBDT circular 19 July 1996

Circular No. 745

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

What this is

Circular No. 745 was issued by the Central Board of Direct Taxes on 19 July 1996. Its subject is 135. Payment of income by way of interest on securities to Ramakrishna Math and Ramakrishna Mission whose income is exempt under section 10(23C)(iv).

This grants an exemption or a relief under a provision that allows one. Read the conditions attached: an exemption notification is construed strictly, and a condition missed is the exemption lost.

What it does

Lets interest on Central and State Government securities be paid to the Ramakrishna Math and the Ramakrishna Mission without deduction of tax at source under section 193, their income being exempt under section 10(23C)(iv). The relief is given by name to those two institutions and takes effect from the financial year current when the circular was issued.

Why it was issued

Representations had been received asking that these two institutions be spared deduction at source on interest on securities, given that their income is exempt.

Who it reaches

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.
Under the 1961 ActNow
s.10s.11, s.19

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

135. 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 current financial year.
Circular : No. 745, dated 19-7-1996.

What to watch

Where you meet it

When a payer of interest on Government securities is asked why no tax was deducted, or in a section 201 proceeding for failure to deduct under section 193.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

← Circular No. 746  ·  Circular No. 743 →

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.