194a

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Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2011 i want to ask a question related to TDS provision
whether cooperative society carried banking business required to deduct tax on fixed deposit of their members

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 October 2011 Yes Cooperative Bank is required to deduct TDS.

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Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2011 and sir whether sahakari mandalis are also required to deduct tax on FD interest of their members

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 October 2011 Yes TDS deduction is required on crossing the threshold limit.

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Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2011 Thank you sir for your valuable advise.
i was confused because i thought that if cooperative society pay interest to their members than TDS provision will not apply. but u are right it was only for recurring deposit and saving account int.
thank you ones again sir

Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2011 but sir as per sec 194A any interest paid by cooperative credit society and cooperative banks to its member thereof are not liable for TDS

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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05 October 2011 Section 194(3)(v) provides that TDS is not required to be deducted on interest paid by a co-operative society to its members or other co-operative socities.

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Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2011 same is applicable for FD interest to member of cooperative society or its only for interest on recurring deposit and saving account

Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2011 same is applicable for FD interest to member of cooperative society or its only for interest on recurring deposit and saving account

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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05 October 2011 It is applicable for all and any type of interest. There is no distinction between the types of interest.

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Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2011 Thanks sanjay sir and sidhartha sir

Radhakrishnan K.V.

Radhakrishnan K.V. (Expert)
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16 April 2013 No TDS is required on interest paid to members by any society. [sec.194A(3)(v)]
No Tds for interest paid to any depositor,member or non-member by PACS,PCARD banks and Primary credit societies.
Please refer the cases of Moolamattam employees co-operative society and Thodupuzha urban co-operative bank.