TDS deduction under section 194A of the Income-tax Act, 1961 in case of Senior Citizens

F. No. Pro DGIT(S)/CPC(TDS)/

Notification/2018-19

Government of India

Ministry of Finance

Central Board of Direct Taxes

Directorate of Income-tax (Systems)

New Delhi Notification No. 06/2018

Notification No. 06/2018

New Delhi, 06th December, 2018

Subject: - TDS deduction under section 194A of the Income-tax Act, 1961 in case of Senior Citizens - reg.-

It has been brought to the notice of CBOT that incase of Senior Citizens, some TDS deductors/Banks are making TDS deductions even when the amount of income does not exceed fifty thousand rupees. The same is not in accordance with the law as the Income-tax Act provides that no tax deduction at source under section 194A shall be made in the case of Senior Citizens where the amount of such income or, the aggregate of the amounts of such income credited or paid during the financial year does not exceed fifty thousand rupees. (Please refer to the third proviso to sub-section 3 of section 194A)

2. Under sub-rule (5) of Rule 31A of the Income-tax Rules, 1962, the Director Generalof Income-tax (Systems) is authorized to specify the procedures, formats and standards for the purposes of furnishing and verification of the statements or claim for refund in Form 26B and shall be responsible for the day-to-day administration in relation to furnishing and verification of the statements or claim for refund in Form 26B in the manner so specified.

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