CBDT clarifies Issue regarding TDS deduction under Income-tax Act, 1961 in case of Senior Citizens

Dec 10, 2018 | by Avantis RegTech Legal Research Team


The Central Board of Direct Taxes (CBDT) is of the opinion that in case of Senior Citizens, some TDS deductors/Banks are making TDS deductions even when the amount of income does not exceed Rs. 50,000. The same is not in accordance with the law as the Income-tax Act provides that no tax deduction at source under Section 194A of the Income-tax Act, 1961 shall be made in the case of Senior Citizens where the amount of such income or, the aggregate of the amounts of such income credited or paid during the financial year does not exceed Rs. 50,000.

Under Rule 31A(5) of the Income-tax Rules, 1962, the Director General of Income-tax (Systems) is authorized to specify the procedures, formats and standards for the purposes of furnishing and verification of the statements or claim for refund in Form 26B and shall be responsible for the day-to-day administration in relation to furnishing and verification of the statements or claim for refund in Form 26B in the manner so specified.

The Principal Director General of Income-tax (Systems) has clarified that no tax deduction at source under Section 194A shall be made in the case of Senior Citizens where the amount of such income or, the aggregate of the amounts of such income credited or paid during the financial year does not exceed Rs. 50,000.

[Notification No. 06/2018]

URL: https://www.incometaxindia.gov.in/communications/notification/notification6_2018_tds.pdf


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