970_IT TDS us 194A and list of payments liable to TDS
Download
Report
Transcript 970_IT TDS us 194A and list of payments liable to TDS
TDS ON INTEREST PAYMENTS BY
BANKS
November, 2011
TDS ON INTEREST
INTEREST ON BANK DEPOSITS
TDS applicable to interest on
term / fixed deposits
cumulative deposits
reinvestment deposits
variable / flexi deposits
TDS not applicable to interest on
recurring deposits
deposits in savings bank accounts
GENERAL EXEMPTIONS
Payments to the following persons are exempt
from TDS u/s. 196 –
Government
RBI
Mutual funds
Corporations established under central Law whose
income is exempt
TDS ON INTEREST
EXEMPTIONS FROM TDS –
Interest
paid to banks, cooperative banks, financial
institutions established under the law, LIC, UTI,
Insurance companies
Interest paid by a cooperative bank to its member or
another cooperative society
interest paid on deposits by primary agricultural credit
society / primary credit society / cooperative land
mortgage bank / cooperative land development bank
Interest paid to notified institutions/associations/bodies
Interest paid by banks and cooperative banks in respect
of deposits other than time deposits
TDS ON INTEREST
INTEREST ON BANK DEPOSITS
interest payable on all the deposits in the
branch standing in the name of a payee should
be aggregated even if multiple Ids were alloted
interest payable in the case of a deposit in
joint names should be aggregated with the
interest payable to joint account holder having
higher interest income (circular No. 256)
CASES OF NON DEDUCTION / LOWER DEDUCTION
Cases of payees other than company or firm
who furnish declarations in form No 15G / 15H
Cases of payees covered by certificate of non
deduction or deduction at a lower rate issued
by the Income tax department u/s.197
CONDITIONS FOR VALIDITY OF
15G / 15H DECLARATIONS
Declarations should not be accepted routinely
Blank / incomplete declarations are invalid
Declaration in form No. 15G not valid if the
amount paid / credited exceeds the tax exemption
limit
Declarations valid only for the assessment year
mentioned therein
CONDITIONS FOR VALIDITY OF
15G / 15H DECLARATIONS
Separate declarations required for each year of
deposit
Declarations to be obtained in each year afresh
Declarations valid only for the payment / credit
made subsequent to the date of declaration
Declarations furnished without PAN are not valid
with effect from 1-4-2010
Declarations to be forwarded to the jurisdictional
Commissioner of Incometax on or before 7th of
the following month
CERTIFICATES OF NON-DEDUCTION/LOWER
DEDUCTION
Certificate valid prospectively from the date of its issue
Valid till the end of the financial year only
Valid to the extent of the interest payable amount
mentioned therein
Instances of payments liable to
TDS
Payment of rent for the bank/ATM premises-194I
Payment of car hire charges-194C
Payment for hiring of equipment such as generator etc.,-194I
Payment of courier charges -194C
Payment of commission to recovery/mobilizing agents-194H
Payment of fees for credit verification-194H
Payment of fees for valuation of immovable properties/jewellery-
194J
Instances of payments liable to
TDS
Payment of fees to advocates/chartered accountants-194J
Payment of fees to MICR centres for clearance of
cheques/demand drafts-194J
Payment of AMC charges for maintenance of generator/a.c./lift
etc.-194C
Payment of AMC charges for maintenance of
computer/networking hardware/software-194J
Payment of charges for supply of manpower for data entry-194C
Payment of charges for security services-194C
Payment towards cash management service-194J