Income tax notice on SFT005

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A user received an income tax notice (SFT005) after a friend purchased a fixed deposit over 10 lakhs, which was later cancelled. They are seeking advice on how to respond to the IT department and whether to file a return if not already done. Additionally, the user inquired about TDS requirements on fixed deposits held with a credit cooperative society, not a bank, and whether members need to pay income tax on the interest received.

Praveen

Praveen (Querist)

27 December 2022 One of my friend purchased F.D ( online transfer only no cash deposited) at SBI for morethan 10 lakhs only for one month, after that he cancelled the F.D. But now he received I.T Notice regarding purchase of time deposits
Please help me how to reply to I.T Department

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

27 December 2022 File return for the relevant year, if not filed earlier.

Praveen

Praveen (Querist)

27 December 2022 Thank you sir
Is there any requirement to deduct TDS on F.D's collected from members of credit cooperative society ( not a bank). This society collect money from members in the form of F.D's and given loans to other members. Please explain clearly tds on credit cooperative society ( is there any requirement to pay income tax on internet received by the member )

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

27 December 2022 Yes, society will deduct TDS on interest paid over FDs maintained with them u/s. 194A of the act.

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