Tds on interest received

Hi Ashish,

Extract of Section from Act

194A. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of interest other than income [by way of interest on securities], shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force :

[Provided that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such interest is credited or paid, shall be liable to deduct income-tax under this section.]

Conculsion:-

In our Case TDS 194A is not applicable because total sales, gross receipts or turnover from the business or profession carried on by him doesnt exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the immediately preceding the financial year.