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TDS not deductible on interest paid by Co-op. Bank to Nominal members
Case Law Details
- Case Name
- Mandheshwari Urban Development Co-op. Bank Ltd. Vs ACIT (ITAT Pune)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2013-14
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Mandheshwari Urban Development Co-op. Bank Ltd. Vs ACIT (ITAT Pune)
issue in the present appeal relates to whether a nominal member, who is not a registered member of the society, can be treated as a member of the cooperative society whether the exemption is available under clause (v) of sub-section (3) of section 194A of the Act. There is no dispute as to the fact that the above categories of persons mentioned above are nominal members of the societies as per bye-laws of the appellant society. The provisions of Maharashtra Cooperative Societies Act also permit admission of such nominal member...
Under Sec 80TTB, as a senior citizen, I am allowed deduction of interest income paid by banks including cooperative banks of Rs 50000 when the interest received from such banks exceeds Rs 50000. A large private bank does not deduct Tax till my interest income exceeds Rs 50000 ( around October or so ). But a cooperative bank deducts Tax at source right from April itself. I have Rs 10 lacs worth FDs in this bank but may go in for premature encashment in which case the taxable interest income will be lower than Rs 50000. Is the cooperative bank right in estimating my interest income for the full fiscal based on the FDs I currently hold and deducting tax at source based on such estimation?
Regards
Namrata Bhat