Tax Deduction Error on Interest from FDRs and KDRs u/s 194A: CBDT Clarifies TDS on Actual Credit Only.

TDS u/s 194A - Short deduction of tax /default in tax deduction on interest paid on FDR’s/KDR’s - the CBDT had clarified that on account of the Core Branch Banking Solution (CBS) Software wherein for monitoring purposes alone interest is calculated on daily or monthly basis and is swept and kept in provisioning account, TDS is not to be deducted at this point but at the time of giving actual credit to the depositors. CIT(A) found that the assessee was unable to establish that it was covered by the said circular - no reason to interfere with the order of the Ld.CIT(A). - AT .....

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