Dear Advocates, Tax consultant lawyers, please clarify the above section interpretation.
A person is a regular member in a co operative bank >he enjoys the TDS exemption by the virtue of the IT act 1961 U/s 194A(3) Ss Viia. since 01-07-1995 no Income tax authorities has questioned it . now it the section is interpreted it as The Co operative society is differ from a urban Co Operative Bank , accordingly you (member of a Co Op bank) are not eligible for exemption IT officers claims.
The CBDT directives Ref:- Direct Tax circular NO 9/2002 dtd 11/09/2002 which clarifies the above doubt very clearly that, the TDS exemption is permitted for regular member.However IT authorities clarifies that, the Bombay high court in 2004 has quashed the circular , by which the Bank member is not eligible for exemption.
Now please clarify the fact under subsection Viia and Viib u/s 194A(3) of IT act 1961 stands for what?
Whether a Urban co op bank member still eligible for TDS exemption at bank level or not. any recent High court verdict is there on reference for the IT authorities Claim.
Muralidhar arikady.
member of the club
