Tds on making the payment to any senior citizen

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2012 If some one is availing the benefit of senior citizen under the income tax act, and made some self explanatory statement by stating that he/she is attaining the age of 65 and his/her income is not taxable and subsequently requested not deduct tax at source under section 194C, 194J etc. Will that self declaration can be accepted by the company who is liable to deduct tax at source. Though the person has not been obtained the necessary no deduction exemption under section 197(1) of the income tax act from the concerned department.

CMA Sanjay

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

13 October 2012 Section 197A of the Income Tax Act allows a senior citizen to submit a declaration to the deductor for non-deduction of tax.

However, this declaration can only be submitted where the deductor is making payment for the following:

Interest on securities (Section 193) - NSC etc.
Dividend (Sec 194)
Interest other than interest on securities (Sec 194A)

If the deductor is making any other payment (Sec 194C, Sec 194J, etc) then self declaration is NOT sufficient.

The payee has to obtain a certificate for lower/non deduction u/s 197.

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