21 May 2013
We have deducted TDS on the interest paid on FDR to the Co-Operative Bank and also remitted to Income tax department.
However later on we understood that as per the provision of section 194(A) of Income tax Act 1961 that any amount paid to the banking company or co-operative society engaged in the business of the banking company provisions of clause no. 1 of section 194(A) is not applicable.
Kindly provide us the procedure/clarification for claming the TDS deducted wrongly and remitted to the Income Tax Department.
Your early feedback will be highly appreciated and thankful
21 May 2013
As per sec.194A(3)(iii) no TDS is required from the interest paid/credited to a Co-operative society. If the society is going for litigation you may be bound to pay back the amount to the society. Alternatively the co-operative society can claim refund from IT Department.
CAclubindia
