Tds section 195

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There is an TDS dection made by Income Tax CPC u/s 195 on interest paid to an HUF Assessee who is resident.??

 

Is there something else other than Payment to NRI u/s 195 ..??

TDS was deducted at the rate of 30% with  2% +1% cess.

 

Please confirm

Replies (3)

There are few points:

1. HUF being resident - Section 195 is not applicable to the HUF.

2. However, TDS to be deducted is the lower of the following:

a) Rate as per DTAA

b) Slab Rates

c) Rates as per provision of Section 115 (applicable to NRI)

 

Based on above the TDS should be deducted and not @ 30%.

But the TDS has been deducted by the AO CPC u/s 195 for HUF on Interest paid by him on TDS refund.

 

The HUF or Karta both are resident. So why its being done its a matter of a question

 

Anyone else if have revceived such deduction please share about it.

 

YOU CAN GO TO DEPARTMENT AND MEET YOUR CLIENT'S JURIDICTIONAL ASSESSING OFFICE

 

YU WILL SEE THE NERXT STEP TO BE TAKEN........

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