No TDS Deduction of Senior Citizens under Income Tax if interest upto Rs 50000 :CBDT Notification No. 06/2018

By | December 8, 2018
(Last Updated On: December 8, 2018)

No tax deduction u/s 194A for Senior Citizens where aggregate amounts of interest credited or paid during financial year does not exceed Rs. fifty thousand – CBDT

F. No. Pro DGIT(S)/CPC(TDS)/Notification/2018-19

Notification No. 06/2018

Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income-tax (Systems)
New Delhi

New Delhi, 06th December, 2018

Subject: – TDS deduction under section 194A of the Income-tax Act, 1961 in case of Senior Citizens – reg.-

It has been brought to the notice of CBDT that in case of Senior Citizens, some TDS deductors/Banks are making TDS deductions even when the amount of income does not exceed fifty thousand rupees. The same is not in accordance with the law as the Income-tax Act provides that no tax deduction at source under section 194A 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.
(Please refer to the third proviso to sub-section 3 of section 194A)

2. Under sub-rule (5) of Rule 31A of the Income-tax Rules, 1962, the Director General of Income-tax (Systems) is authorized to specify the procedures, formats and standards for the purposes of furnishing and verification of the statements or claim for refund in Form 26B and shall be responsible for the day-to-day administration in relation to furnishing and verification of the statements or claim for refund in Form 26B in the manner so specified.

3. In exercise of the powers delegated by the Central Board of Direct Taxes (Board) under sub-rule (5) of Rule 31A of the Income-tax Rules, 1962, the Principal Director General of Income-tax (Systems) hereby clarifies that no tax deduction at source under section 194A 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.

( Dewangi Marthak )
Asstt. Commissioner of Income-tax (CPC-TDS),
0/0 the Pr. Director General of Income-tax (Systems),
New Delhi

Copy for kind information to:-

1. PPS to the Chairman and all Members, CBDT, North Block, New Delhi.
2. All Pro Chief Commissioners/Pro Director Generals of Income-tax/Chief Commissioners of Income-tax/Pr. Commissioners of Income-tax/Commissioners of Income tax/Commissioners of income-tax (TDS) with a request to circulate amongst all officers in their regions/charges.
3. JS (TPl)-1 & II / Media Coordinator and Official spokesperson of CBDT.
4. ADG(IT) / ADG(Audit) / ADG(Vig.) / ADG(Systems) 1, 2, 3,4, 5/ ADG(TPS) – 1, 2 / CiT(CPC~ITR) / CIT (CPC-TDS).’
5. ADG (PR, PP & OL).
6. Chief General Manager-in-Charge, Department of Government and Bank Accounts, Reserve Bank of India, Opp. Mumbai Central Railway Station, Mumbai 400 008 with request for wide circulation among Banks and necessary complaince.
7. TPL, ITA and IT(B) divisions of CBDT.
8. The Institution of Chartered Accountants of india, I.P. Estate, New Delhi.
9. The Web-Manager, ‘incometaxindia.gov.in’ for hosting on the website.
10. Database cell for uploading on www.irsofficersonline.gov.in and in DGIT(Systems) corner.
11. ITBA publisher for uploading in ITBA portal.
12. ITO (CPC-TDS)-11 for uploading on TRACES portal.

Related Post on TDS under Income Tax

TDS under Income Tax : Free Study Material

Income Tax Deductions  : Free Study Material

TDS Rates for AY 2019-20 (FY 2018-19)

TDS How to Meet Your Obligations-As Amended by Finance Act 2018; 24th Edition (F.Y 2018-19) Taxmann

How to register on Traces as Deductor

Tax Deductor registration on Incometaxindiaefiling.gov.in

[Video] ; TDS on Provision for Audit Fees : Income Tax News [Part37]

Video ] Check Your TDS : Income Tax News [Part 25] : TaxHeal.com

Income Tax TDS Certificates : Free Study Material

How to Charge TDS on GST Portion of Tax Invoice

194IB -TDS on Rent w.e.f 01.06.2017 in case of Individual and HUF not liable for Audit

TDS on Rent -Complete Guide

TDS on Interest , Professional Fees , royalty under Income Tax

Paying rent over 50000 per month ? Deduct TDS

Income Tax advisory for tenants in India : deduct and pay TDS on rent u/s 194IB

Pension : Who will issued TDS statement ( Form 16)

Can I file single TDS/TCS statement for every branch of Company

Format of Request Letter for copy of Provisional Receipt of TDS return

TDS on Rent of Property : Section 194IB: FAQs : Form 26QC ; Form 16C

TDS on Year End Provisions

Late Fees & Penalty for delay in filing TDS/TCS Statements under Income Tax

TDS on Property

TDS on property : FAQs

TDS on Property Sale -Complete Guide

26QB -Challan cum Statement for TDS on Property Sale

Form 26QB filing and Correction procedure (TDS on Property)

Online Correction Facility for 26QB enabled (TDS on sale of property)

Procedure to generate Form 16B?

Password to open Form 16B

Expenses Dis allowance if TDS not Deducted

TDS Disallowance under Income Tax : Free Study Material

Notifications on TDS

No TDS u/s 193 on ‘ IRFC 54EC Bonds ’ & ‘ PFC 54EC Bond ’ : CBDT Notification  No. 27/2018/F. No. 275/27/2017-IT(B) and No. 28/2018/F. No. 275/27/2017-IT(B) Dated 18th June, 2018

Leave a Reply

Your email address will not be published.