Tds on interest paid by co-operative credit society
Radhakrishnan K.V.
(Querist) 07 May 2013
This query is : Resolved
My client is a co-operative credit society. Should they effect TDS on the interest paid on the deposits of nominal members?
Raj Kumar Makkad
(Expert) 07 May 2013
Yes. Your client is required to deduct TDS and deposit it in treasury as per rules within the stipulated time with complete record.
Radhakrishnan K.V.
(Querist) 08 May 2013
But sir, would not they get immunity by virtue of Sec.194A(3)(V)of Income Tax act?
More over what is the rationality in remitting the TDS at the treasury instead of the IT department?
Raj Kumar Makkad
(Expert) 08 May 2013
The alleged immunity is not available in the given case to the society and deposit in treasury means in the IT department.
Radhakrishnan K.V.
(Querist) 09 May 2013
I shall produce the relevent section as:-
194A.(1) Any person, not being an individual or a Hindu undivided family,
who is responsible for paying to a resident any income by way of interest other than income by way of interest on securities, shall, at the time of credit of such income to the account of the payee17 or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force :
Sec.194A(3)- The provisions of sub-section(1) shall not apply—
(v) to such income credited or paid by a co-operative society to a member thereof or to any other co-operative society.
So would not this provision help them?
