Human-probability test defeats political donation deductions where banking records mask accommodation-entry fund layering rather than genuine contribu...
Interest on time deposits paid by a co-operative bank to a non-member co-operative society falls within the second limb of the TDS exemption for payments to co-operative societies. Although the member-payment limb specifically excludes co-operative banks, that exclusion does not extend to the separate limb for payments to another co-operative society. The bank retains its legal character as a co-operative society for this purpose. Accordingly, no tax deduction at source is required, and TDS-default and consequential interest liabilities do not arise.
Interest on time deposits paid by a co-operative bank to a non-member co-operative society falls within the second limb of the TDS exemption for payments to co-operative societies. Although the member-payment limb specifically excludes co-operative banks, that exclusion does not extend to the separate limb for payments to another co-operative society. The bank retains its legal character as a co-operative society for this purpose. Accordingly, no tax deduction at source is required, and TDS-default and consequential interest liabilities do not arise.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4921 
