Circular No BC-STF, dated ANDHRA PRAGATHI GRAMEENA BANK HEAD OFFICE::KADAPA. Circular No BC-STF, Dated 2 nd March 2007.

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1 ANDHRA PRAGATHI GRAMEENA BANK HEAD OFFICE::KADAPA Circular No BC-STF, Dated 2 nd March INCOME TAX DEDUCTION OF TAX AT SOURCE ON SALARIES FINANCIAL YEAR REF.NO. 1) Cir.No BC-STF, dt ) Cir.No BC-STF, dt ) Cir.No BC-STF, dt All Branches/Offices are aware that the Bank had issued detailed guidelines on various provisions of Income Tax Act 1961 vide Circulars cited basing on the information available with the Bank at that time. The further changes made vide Finance Act 2006 are given below for implementation by Branches/Offices of the Bank. I. Accrued Interest on NSCs : Accrued Interest on NSCs (VIII Issue) eligible for deduction U/S 80 C shall be calculated as under for the Financial Year Financial Year of Accrued Int for Date of Purchase Purchase NSCs of Rs.1000/ Upto March Upto March April 03 to March April 04 to March April 05 to March 06 II. All Branches/Offices shall note that the following provision is included before Clause (c) in Annexure E of Circular No BC-STF, dated Medical Authority for certifying autism, cerebral palsy, multiple disabilities, person with disability and severe disability referred to in clauses (a), (c), (h), (i) and (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999), shall consist of the following: i) a Neurologist having a degree of Doctor of Medicine (MD) in Neurology (in case of children, a Pediatric Neurologist having an equivalent degree); or Page 1 of 5

2 ii) a Civil Surgeon or Chief Medical Officer in a Government Hospital. The form No. 10-IA i.e. certificate of the Medical Authority for certifying person with disability, severe disability, autism, cerebral palsy and multiple disability for purposes of Section 80DD and Section 80 U is given in Annexure A of this circular. III. All Branches/Offices shall note that the following Provision is added at the end of Annexure I of Circular No BC-STF, dated Where the specialist specified is not posted in the Government hospital in which the patient is receiving treatment, the certificate may be issued, with prior approval of the Head of that hospital, by any other specialist working full-time in that hospital and having a post-graduate degree in General or Internal Medicine, which is recognized by the Medical Council of India. IV. The revised/modified TDS chart for the Financial Year is given in Annexure B. V. It is reliably learnt that TDS on interest is made during the month of March only at a few Branches. This is clear violation of the Provisions of Section 194A. TDS is mandatory as and when interest payment is made/account is credited beyond the exempted limit. For further guidance, if any required on TDS on other payments like interest on Deposits (U/S 194A), contract payments (U/S 194C(1)), Advertising contract (U/S 194C(2)), Commission or Brokerage (U/S 194H), Rent Payments (U/S 194I), and Professional/Technical Fees (U/S 194J) etc, including e filing of Form No.26Q, Branches may contact RO/Department concerned handling the subject at Head Office. VI. Quarterly e TDS Returns: Form No.24Q for TDS on salaries and 26Q for TDS on other payments is to be filed at the end of each quarter before 15 th July, 15 th October, 15 th January and before 30 th April for the last quarter. TDS details of the relevant 3 months only is to be furnished therein (Refer circular No BC-STF, dated ). Form No.27 is the Quarterly Return for TDS on payments to NRIs, RNORs towards interest, dividend etc. All e TDS Returns are to be filed with TIN-FCs only. Annual Returns in Form No.24 and Form No.26 have been dispensed with. Page 2 of 5

3 However, Sponsor Bank clarified vide its letter 835/ACC:NR/2006/F 169, dt that there is no specific clarification as to the filing of NIL return in Form No.24Q through TIN-FCs. However, the Sponsor Bank opined that there is no necessity to file NIL Return by the Branches as it amounts to payment of huge amount cumulatively each quarter towards e filing of Form No.24Q. They further opined that as and when notices are received, NSDL may be informed by a letter stating that Form No.24Q for the said quarter is NIL. In view of the above, Branches/Offices shall follow the clarification/opinion given by the Sponsor Bank with regard to filing of Form No.24Q. All other guidelines given in cited circulars are unaltered. This circular shall be circulated among all the staff working at Branches/Offices against their acknowledgement. Clarification, if any, on this circular may be sought from the Personnel Department, Head Office, Kadapa. (M.OBULESU) CHAIRMAN Page 3 of 5

4 ANNEXURE A Form No.10-IA (See sub-rule (2) of rule 11A) Certificate of the medical authority for certifying person with disability, severe disability, autism, cerebral palsy, and multiple disability for purposes of section 80DD and section 80U. Certificate No Date: 1. This is to certify that Sri/Smt.Kum Son/Daughter of Sri age years male/female *, residing at Registration No.is a person with disability/severe disability* suffering from autism/cerebral palsy/multiple disability*. 2. This condition is progressive/non-progressive/likely to improve/not likely to improve*. 3. Reassessment is recommended/not recommended after a period of Months/years*. Sd/- (Neurologist/Pediatric Neurologist/Civil Surgeon/ Chief Medical Officer*) Name: Address of Institution/Government hospital: Qualification/Designation of specialist: SEAL Signature/Thumb impression* of the patient Note: *Strike out which is not applicable

5 ANNEXURE B Sl.No. Nature of Payment U/S Where the amount exceed p.a. TDS CHART FOR THE FINANCIAL YEAR Rate of TDS Individual/ Firms/ HUF/AOP/ Ltd.Cos BOI TDS Certificate Form No. Quarterly e TDS Return Co-op Society, local authority 1 Salaries Slabwise Q 15 th 2 Interest on Deposits 194 A % 11.22% 10.20% 16 A 26Q 15 th 22.44% 3(a) Contracts Payments 194 C(1) % 2.244% 2.04% 16 A 26Q 15 th (b) Advertising Contract 194 C(2) % 1.122% 1.02% 16 A 26Q 15 th 4 Commission or Brokerage 194 H % 5.61% 5.10% 16 A 26Q 15 th 5 Rent Payments 194 I % 22.44% 20.40% 16 A 26Q 15 th 6 Professional/ Technical Fees 194 J % 5.61% 5.10% 16 A 26Q 15 th 7 Payments to non-residents 195 Fully taxable 33.66%* 33.66% - 16 A th 1. The above rate of TDS are inclusive of Surcharge and education cess. Basic Rates of 1%, 2%, 5%, 10%, 15%, 20% and 30% are increased by 10% wherever applicable and 2% education cess on Basic Rate + SC. 2. Contract payments if exceed Rs.50000/- in aggregate during the Financial Year, TDS is applicable even where individual contracts are below Rs.20000/-. 3. TDS is to be remitted by 7 th of succeeding month. Certificate in Form No.16A is to be issued by the end of next month from the month of deduction unless a request is made by the deductee for consolidated one by 30 th April. 4. Form No.27, 24Q for TDS on salaries and 26Q for TDS on other payments are quarterly e TDS returns. 5. Form No.26QA in the revised format is to be maintained by the Branches for payment of interest to Residents without deduction of tax and Form No.26QAA is the reporting format to be submitted by head Office to Income Tax Authorities on consolidation. Branches have to submit Form 26QAA to their respective ROs. * Where payment do not exceed Rs.10 lakh p.a., TDS rate is 30.60% only (without surcharge) Due Date