Categories: Income tax

No TDS on Interest up to Rs.50000/- in case of Senior Citizens

Directorate of Income taxes (systems) New Delhi vide its notification no 06/2018 dated December 6, 2018 advised TDS detectors and Banks that they should not deduct tax at source  in the case of Senior Citizens where the amount of such income or, the aggregate of the amounts of such income credited or paid during the financial year does not exceed fifty thousand rupees.

As per the third proviso to sub-section 3 of section 194A of IT act such deductions (TDS) is not in accordance with the law as the Income-tax Act provides that no tax deduction at source shall be made in the case of Senior Citizens where the amount of such income or, the aggregate of the amounts of such income credited or paid during the financial year does not exceed fifty thousand rupees.

The above clarification was issued by Principal Director General of Income-tax (Systems) in the light of complaints received by CBOT  that incase of Senior Citizens, some TDS deductors/Banks are making TDS deductions even when the amount of income does not exceed fifty thousand rupees.

 

Surendra Naik

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Surendra Naik

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