Para 8.16.1 — CAM
Original Rule Text
8.16.5 The income tax deducted at source(TDS) from State Government securities either at the treasuries or at Public Debt Offices of the RBI, is classified under the suspense head ‘TDS Suspense’ in the State Section of accounts. The procedure prescribed in para 8.16.1 and 8.16.2 above will be applicable for the passing on the credit to the Zonal Pay and Accounts Officer of CBDT and its final accounting in his books.
What This Means
This paragraph extends the TDS settlement procedure to cover income tax deducted at source from State Government securities — whether deducted at treasuries or at the Public Debt Offices of the RBI. The TDS from these securities is also classified under the suspense head 'TDS Suspense' in the State Section of accounts. The same procedure described in Paras 8.16.1 and 8.16.2 applies for passing the credit to the Zonal PAO of CBDT and its final accounting in the CBDT's books.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1TDS from State Government securities follows the same procedure as TDS from salary/bills
- 2Deductions at both treasuries and RBI Public Debt Offices are covered
- 3Classified under 'TDS Suspense' in State Section of accounts
- 4Credit is passed to Zonal PAO of CBDT for final accounting
Practical Example
The RBI Public Debt Office deducts TDS of Rs. 2 lakh from interest paid on State Government securities held by a private investor. This TDS is classified under 'TDS Suspense' in the State Section. Through the procedure in Para 8.16, the AG of the concerned State arranges the transfer of this amount to the Zonal PAO of CBDT, who books it as income tax revenue of the Union.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Are State Government securities subject to TDS?▼
Does the RBI Public Debt Office follow the same classification as treasuries for TDS?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.