Tax deduction at source on credited interest requires deduction when interest is credited, not deferred until maturity. Obligation to deduct tax at source arises when interest on deposits, debentures or bonds is credited to the payer's books or paid, whichever is earlier; bookkeeping credit to an 'Interest payable' or similar account is deemed credit to the payee and triggers deduction duties. For cumulative instruments the deductor must deduct each time interest is credited and deposit the tax with the Central Government within the prescribed time; a small-amount exemption for aggregate interest in a financial year applies and other statutory exemptions remain available.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax deduction at source on credited interest requires deduction when interest is credited, not deferred until maturity.
Obligation to deduct tax at source arises when interest on deposits, debentures or bonds is credited to the payer's books or paid, whichever is earlier; bookkeeping credit to an "Interest payable" or similar account is deemed credit to the payee and triggers deduction duties. For cumulative instruments the deductor must deduct each time interest is credited and deposit the tax with the Central Government within the prescribed time; a small-amount exemption for aggregate interest in a financial year applies and other statutory exemptions remain available.
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