Notification No. 27/2023, dated 16-05-2023 … Continue reading “Threshold Limit for Interest under Mahila Samman Savings Certificate for Sec. 194A is Rs. 40,000: CBDT”
The post Threshold Limit for Interest under Mahila Samman Savings Certificate for Sec. 194A is Rs. 40,000: CBDT appeared first on Taxmann Blog.
Notification No. 27/2023, dated 16-05-2023
Section 194A of the Income-tax Act provides for deduction of tax at source (TDS) at the rate of 10% from interest, other than interest on securities, paid or payable to a resident person. The tax shall be deducted at the time of payment or credit, whichever is earlier.
Further, tax is required to be deducted only if the aggregate amount of interest credited or paid to the payee in respect of time deposit during the financial year exceeds the threshold limit prescribed under section 194A(3).
Sub-clause (c) of clause (i) of Section 194A(3) provides the threshold of Rs. 40,000 in case any deposit made with post office under any scheme framed by the Central Government and notified by it in this behalf.
Exercising such power, the Central Board of Direct Tax (CBDT) has notified the Mahila Samman Savings Certificate, 2023, for section 194(3)(c)(i). Thus, the threshold of Rs. 40,000 shall be applicable for deduction of tax at source under section 194A in respect of interest paid/credited to an assessee who deposited the amount under the Mahila Samman Savings Certificate, 2023.
Click Here To Read The Full Notification
The post Threshold Limit for Interest under Mahila Samman Savings Certificate for Sec. 194A is Rs. 40,000: CBDT appeared first on Taxmann Blog.
Income Tax Archives – Taxmann Blog Read More