Section 112A

Tax on interest on National Savings Certificates (First Issue).

112A. Where the total income of an assessee not being a company, includes any interest on National Savings Certificates (First Issue), the tax payable by him on his total income shall be—

¹[(a) the amount of income-tax payable on the total income as reduced by the amount of such inclusion, had the total income so reduced been his total income ; plus

(b) the amount of income-tax calculated on the amount of such interest included in the total income at the average rate of income-tax which would have been applicable to the total income if the amount of such interest and the amount of compensation or other payment referred to in ²[sub-clause (a) or sub-clause (b) or sub-clause (c) of clause (ii) of section 28] and of the capital gains, if any, had not formed part of it.]

Explanation 1 : [Omitted by Taxation Laws (Amendment) Act, 1970, w. e. f. 1-4-1969.]

Explanation 2 : For the purposes of this section and section 193, "National Savings Certificates (First Issue)" includes "National Savings Certificates (First Issue)—Bank Series."

[As amended by the Finance Act, 1974]