Section 194A(3)(v) of Income Tax Act – Exemption of TDS on Fixed Deposits
The assessee would become entitled to an exemption to deduct income tax under the provisions of sub-section (3)(v) of Section 194A qua the interest amounts paid to its depositors who are co-operative societies.
TDS Exemption – Cooperative Society & Cooperative Bank
The appellant is the cooperative society under the Multi Cooperative Societies Act and has banking licence for banking business.
The issue as raised by the department in such proceedings was in respect of the assessee withholding deposit of tax deducted at source (TDS), on interest paid by the assessee on the fixed deposits maintained by the co-operative societies with the assessee. It is the case of the assessee that the co-operative societies who had deposited the amounts with the assessee were not the members of the assessee / bank, as also, they cannot be members in view of the bye-laws of the assessee.
Income Tax Appeal (L) No.2533 of 2026 of Central Credit Cooperative Bank Ltd (Borivali) Vs. The Income Tax Officer, TDS Ward, Mumbai with connected appeals.
