Interpretation of "resident" in sec.194a

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2014 Resp.Sir/Mam, What is the interpretation of word resident in sec.194A of Income Tax Act,1961.Does it refer to only single resident from the viewpoint of payer?? For eg. A paid 5000/- to B and 15000/- to C. So will the section apply separately for both B and C or the limits considered in subsection (3) are jointly for both payees from payer viewpoint.Please Explain.

KCJM and Associates

KCJM and Associates (Expert)
Follow

21 August 2014 The threshhold limit as prescribed u/s 194A for deduction of TDS is to be calculated from viewpoint of payee and not payer.

As illustrated by you, no TDS will be deducted on interest paid to Mr. B while interest payment to Mr. C will be subject to TDS @ 10% on Interest amount of Rs.15,000/-