Ncd tds

If tax is not deducted on interest payment there will not be any entry in 26AS. The other methods to be adopted a) Bank Summary to identify such transactions b) Correlated with the interest payment advice c) Alternatively write to the R&T agent or the company issuing debetntures to provide a statement of the same.

Thanks Anand.

So essentially advice/statement is the only way to determine such interest incase of no TDS. Any idea how the issuing company OR R&T agent informs the IT dept for the interest paid to the NCD holder (since no TDS has been deducted?). This would be needed to cross check the filed IT return is appropriate or not.

 

 

You are welcome Abhijit

I think that they do not inform the amount of interest paid to the concerned holders.

They would be reporting to IT Department only if TDS is deducted on the same

However, they are required to report receipt of Rs. 5 Lakhs or more from any person under Section 285BA r.w. Rule 114E. i.e at the time of allotment of bond (Annual Information Return)

 

Thanks Anand.

Anand,

Is the same applicable to Company fixed deposits? Meaning, they do not report the TDS or its entry in 26AS?

I saw one 26AS wherein Oriental Bank (OBC) has indicated interest paid for fixed deposit in 26AS but indicated that no TDS has been deducted. So basically, the information of how much interest was paid is available via 26AS for OBC bank.

What do Company deposit follow?

Thanks in advance.

 

I do not know why OBC would show a transaction in their ETDS return where no tax has been deducted.

THis is not tne norm.

Otherwise i have replied to your PM on other issues.