Assessee, a Nationalized Bank. \u00a0During a spot verification, it was found that assessee had not complied with TDS provisions under section 194A, which required deduction of tax at source on interest paid or credited to customer accounts. Assessing Officer held assessee in default under section 201 \u00a0Tribunal held that-whether bank is in default under section 201(1) should be made considering Explanation to section 191.\u00a0 Cases falling under section 197A(1A), where an eligible person declares in Form No. 15G that their tax liability on total income, including interest, is Nil but not hit by section 197A(1B) should be excluded from obligation to deduct tax at source.\u00a0 Cases covered under section 194A(1C), where individuals above a specified age declare in Form No. 15H that their tax on total income, including such interest, is Nil, should also be excluded.\u00a0 Cases with no obligation to deduct tax at source should not be considered for interest under section 201(1A).Therefore matters are remanded to the Assessing Officer for passing fresh orders. In case, it is \u00a0found that recipients included amount of interest in their total income, then assessee should not be treated in default. (AY.\u00a0 2012-13, 2013-14 , 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 201 : Deduction at source-Failure to deduct or pay-Interest under section 201(1A) is payable only when there is an obligation to deduct tax-Matter remanded.[S. 191, 194A , 197A , 201(1) , 201(IA), Form 15H] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-44604","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bBq","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44604","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=44604"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44604\/revisions"}],"predecessor-version":[{"id":44605,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44604\/revisions\/44605"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=44604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=44604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=44604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}