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2018 (7) TMI 228 - AT - Income TaxTDS u/s 194A - assessee is a cooperative society registered under the Karnataka Cooperative Society Act, 1959 - Held that:- The Ministry of Finance, Government of India vide Circular No.19/2015 in F.No.142/14/2015-TPL, has held that the Co- operative Banks are not required to deduct tax at source on time deposits of its members paid or credited on or before 1.6.2015 The provisions of the section 194A(3)(v) have been amended so as to expressly provide that the exemption provided from deduction of tax from payment of interest to members by a co-operative society under section 194A(3)(v) shall not apply to the payment of interest on time deposits by the co-operative banks to its members. As this amendment is effective from the prospective date of 1st June, 2015, the co-operative bank shall be required to deduct tax from the payment of interest on time deposits of its members, on or after the 1st June, 2015. Hence, a cooperative bank was not required to deduct tax from the payment of interest on time deposits of its members paid or credited before 1st June, 2015. SEE THE COMMISSIONER OF INCOME-TAX TDS, VERSUS THE NATIONAL CO-OPERATIVE BANK LTD BANASHANKARI 2ND STAGE BRANCH, BANGALORE [2016 (6) TMI 1118 - KARNATAKA HIGH COURT] - Decided against revenue
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