Tax deduction at source on payment of interest on time deposits under section 194A of the Income-tax Act, 1961 by banks following Core-Branch Banking Solutions (CBS) software—Reg.

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..... r section 194A of the Income-tax Act, 1961 by banks following Core-Branch Banking Solutions (CBS) software—Reg. As per the provisions of section 194A of the Income-tax Act, 1961, income-tax has to be deducted at source at the time of credit of interest income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, at the rates .....

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..... rest payable on time deposits is calculated generally on daily basis or monthly basis and is swept and parked accordingly in the provisioning account for the purposes of macro-monitoring only. However, constructive credit is given to the depositor's/payee's account either at the end of the financial year or at periodic intervals as per practice of the bank or as per the depositor's/payee's require .....

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..... ulating interest on time deposits on daily or monthly basis in the CBS software used by banks, tax need not be deducted at source on such provisioning of interest by banks for the purposes of macro monitoring only. In such cases, tax shall be deducted at source on accrual of interest at the end of financial year or at periodic intervals as per practice of the bank or as per the depositor's/payee's .....

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