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No TDS in following cases

  1. Interest paid by firm to Partners
  2. Interest paid by cooperative society (other than cooperative bank) to its members
  3. Interest paid by cooperative society (other than cooperative bank) to any other cooperative society.
  4. Interest on Deposits as notified by Government.
  5. Interest on Compensation as awarded by theMotor Accidents Claims Tribunal

 

  1. income paid by way of interest on the compensation amount awarded by the Motor
  2. Accidents Claims Tribunal where the amount of such income or, as the case may
  3. be, the aggregate of the amounts of such income paid during the financial year
  4. does not exceed ` 50,000

 

 

  1. income paid or payable by an infrastructure capital company or infrastructure capital fund or public sector company in relation to a zero coupon bond issued on or after 1.6.2005.

 

  1. Interest paid to
    1. Bank
    2. LIC
    3. Financial Corporations
    4. Insurance Company/Corporation.
    5. UTI
    6. Notified institution, association, body like National Skill Development Fund

 

Note:-

Cutoff is Rs 10000 if Interest paid by

Bank

Cooperative Society

Post Office

 

In all other cases,cutoff for interest is Rs 5000

 

AMENDMENTS APPLICABLE FROM 1.6.2015 IN 194A

  1. Co-operative banks to deduct tax at source on interest on time Deposits credited/paid to its members

(Exemption only in case of Cooperative Society)

  1. Term deposts include recurring deposit.Hence TDS applicable on it.
  2. If banks/cooperative banks/public company have adopted TDS,then aggregate of all branches to be taken to decide limit under Section 194A
  3. Tax deduction from interest on compensation awarded by the Motor Accident Claims Tribunal to be made at the time of payment, where interest or aggregate interest payment >`50,000
  1. Income Tax
  2. Tax Deducted at Source (TDS)
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CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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