Case Law Details
Tamilnadu Mercantile Bank Ltd. Vs The ITO (ITAT Chennai)
ITAT Chennai held that non-deduction of TDS and reversal of TDS deduction on interest payment on the basis of declaration in Form No. 15G/ 15H is justifiable.
Facts- During the course of inspection, it was noticed that in respect of 22 payees, interest payment was more than Rs.2 lakhs, on which, the deductor bank has not deducted TDS. The AO worked out total TDS deductible amounting to Rs.7,00,072/-.
The assessee explained that in respect of senior citizens, the bank will deduct TDS as and when payment is made. However, when parties submit Form Nos.15G/15H, the same is reversed.
AO did not accept the plea of the deductor having received Form Nos.15G/15H in those cases. The AO further was of the view that once TDS has been deducted, it cannot be reversed or retained, but it can only be remitted to the account of the central government. Therefore, computed short deduction of TDS in respect of interest payment to depositors amounting to Rs.11,43,976/-.
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