15 June 2009
In case of co operative bank if the person is shareholder of the bank then no TDS is deductible on the Fixed Deposits. However, whether same principal will be applicable if the person is Nominal Shareholder.
16 June 2009
Yes, even if the person is nominal shareholder, no TDS is required to be made. It is necessary that the person holds some shares whether nominal or otherwise is immaterial. No TDS on interest paid on fixed deposits of shareholders in a co-operative bank. Concept of mutuality applies.
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