TDS Liability of Co-Operative Bank On Interest Paid To A Co-Operative Society



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This article clarifies the Tax Deducted at Source (TDS) liability of co-operative banks concerning interest paid to co-operative societies. It discusses the relevant sections of the Income Tax Act, 1961, including amendments made in 2015 and 2020 that have altered the exemption status. The current position is that co-operative banks are generally liable for TDS on interest paid to co-operative societies, especially if their turnover exceeds fifty crore rupees.

A question of law whether a Co-operative Bank is liable to deduct tax at source under the provisions of Section 194A (1) r.w.s. 194A (3) (v) of the Income Tax Act, 1961 (as amended), from the interest paid by it to the co-operative societies, is still remaining unanswered. The provisions of the said
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