TDS U/s 194 for Dividend declared by Pvt. Ltd.

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Himanshu Shah (Querist)
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18 May 2020 Interim Dividend Declared in Board of Directors Meeting of Pvt. Ltd. Co. on 27.04.2020.

Separate Bank A/c opened on 12.04.2020

Cheque Book Received on 18.05.2020.

TDS & Dividend to be paid on 20.05.2020.

What would be the date of the Deduction of TDS from the above dates ? Whether it would be April or May ?

Require this information as to know whether Interest on TDS would be payable or not.

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Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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23 May 2020 Time of deduction of TDS on dividend –

As per provisions of section 194 of the Income Tax Act, the Deductor is required to deduct the TDS earlier of the following dates –

Before making payment in cash; or
Before issuing any cheque or warrant; or
Before making any distribution or payment.