Tds on interest on refund

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Darshan Gandhi

Darshan Gandhi (Querist)
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31 January 2015 when gov. is not deducting TDS on interest paid on refund. why should we?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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31 January 2015 Now that's the rule. Department is PAN and TAN issuing authority. Now you can't ask them to apply for TAN and start deducting TDS and filing TDS return. Department cant deduct TDS and pay it to themselves. Sounds very illogical.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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31 January 2015 But TDS provisions attracts on the interest on refund paid to NRI assessee's.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 February 2015 But Sir whether the entire TDS procedure is followed or it is just tax withholding. Sir kindly provide section reference.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 February 2015 Gupta Ji

Interest paid by government to a RESIDENT is excluded from TDS provisions by section 194A(3)(viii).

But interest paid by government to a NON-RESIDENT is subject to TDS u/s 195 of the Income tax Act,1961.

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