HC ruled that Section 194N of the Income Tax Act, 1961 applies ...

Cooperative Banking Societies Must Comply with TDS Deduction Under Section 194N, No Blanket Exemption Allowed

April 17, 2025

Case Laws Income Tax HC

HC ruled that Section 194N of the Income Tax Act, 1961 applies comprehensively to cooperative banking societies, rejecting the petitioner's claim for exemption under Section 80P(2). The court determined that TDS deduction on loans and subsidies is mandatory, irrespective of the society's specialized agrarian service mandate. The court distinguished prior precedents based on factual variations and found the respondents' procedural actions legally sound. Consequently, the writ petition was dismissed, upholding the 2% TDS deduction and affirming the statutory interpretation that no blanket exemption exists for cooperative banking entities.

View Source

← Previous Next →

HC ruled that Section 194N of the Income Tax Act, 1961 applies ...

Cooperative Banking Societies Must Comply with TDS Deduction Under Section 194N, No Blanket Exemption Allowed

April 17, 2025

Case Laws Income Tax HC

You may also like:

Cooperative bank appealed against TDS obligations on interest payments to cooperative societies and a temple trust. ITAT held that under Sec 194A(3)(v), cooperative...

Deduction u/s 80P(2)(d) was allowed for interest income earned by the assessee from fixed deposits and savings accounts with Ahmedabad District Co-operative Bank...

Benefit of exemption u/s 194A(3)(iii)(a) on interest by the CO-OPERATIVE BANK to the Primary Agricultural Credit Societies - in the case of deposits made by the...

Deduction u/s 80P - deduction of income earned as interest/dividend from co-operative bank is allowable. Section 80P(2)(d) reflects that if income by way of interest or...

Allowability of deduction u/s 80P(2)(d) for interest income from deposits/investments in a cooperative bank by a cooperative society. The assessee, a cooperative society...

Denial of deduction claimed u/s 80P (2)(d) - AO disallowed the benefit by invoking the provision of section 154 for rectification of mistake change of opinion - interest...

The High Court upheld the Tribunal's decision allowing deduction u/s 80P(2)(d) of the Income Tax Act to the assessee, a cooperative society, on the interest income...

Deduction u/s 80P(2)(a)(i) was denied by the Assessing Officer on grounds that the assessee society cannot be termed a mutual concern and principles of mutuality cannot...

Deduction u/s 80P - interest income received from parking its surplus funds with Co-operative Bank - interest would be eligible for claim of deduction under section...

Revision u/s 263 - Deduction u/s 80P(2)(a)(i) - interest income was received by the assessee on deposits - section 80P(2)(d) of the Act specifically exempts interest...

Co-operative Credit Society is distinct and separate from the Co-operative Bank nor it can be said as a Primary Co-operative Bank within the meaning of Banking...

TDS u/s 194A - interest on deposits paid in excess of ₹ 10,000/- to its members - assessee is a cooperative society registered as a cooperative bank and is also...

Disallowance of deduction(s) u/s 80P - interest income from the investments made in co-operative/other bank(s) - The tribunal analyzed Sec. 80P(2)(d) and determined that...

TDS u/s 194N - deduction of tax on cash withdrawal - Agricultural Co-operative Credit Society - The challenge to the impugned Circulars cannot be entertained as the...

Deduction u/s 80P(2)(i) - the assessee is not a recognized bank as per the provision of RBI and there is a difference between the Co-operative bank and in the Credit...

Quick Updates: