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2018 (7) TMI 229 - AT - Income TaxNon deduction of tds u/s 194A - assessee had paid an interest to its members where the individual payment to members exceeded ₹ 10,000/- p.a. - Held that:- Provisions of the section 194(3)(v) of the Income-tax Act 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) of the Income-tax Act 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 dated 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 ACIT v. The Bellary Dist. Co-operative Central Bank Ltd [2018 (7) TMI 228 - ITAT BANGALORE] - Decided in favour of assessee.
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