TDS RELATED QUERY

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 June 2011 IF AN GOVERNMENT DEPARTMENT HAVE A LARGE DEPOSIT IN BANK, WHETHER TDS IS TO BE DEDUCTED ON INTEREST AMOUNT, IF NOT THEN UNDER WHICH SECTION

Querist : Anonymous

Querist : Anonymous (Querist)

29 June 2011 I HAVE READ THAT TDS IS NOT TO BE DEDUCTED IN THIS CASE, PLZ. CLARIFY IN DETAIL, THANKS IN ADVANCE

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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29 June 2011 The section covered here is 194A and as per the above section only the Interest received by the Banking companies then no deduction is to be made.

In case of Government Company there requires approval and notification from CBDT

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Querist : Anonymous

Querist : Anonymous (Querist)

29 June 2011 thanks sir is it means if deputy commissioner office having a bank ac. than there is a need to deduct tds on interest given by bank??/

CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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29 June 2011 The query here is regarding deposits kept in bank by a 'Government Department'. Section 196 clearly exempts any payment made to Government from deduction of TDS. Therefore, TDS will not be deducted on interest paid to Government departments.

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2011 thanks sir for solving my doubt