INCOME TAX

Deduction of TDS

INSTRUCTION NO. 1926/1995

 Dated: July 14, 1995

Section(s) Referred: 194A ,194C ,194J ,194K

Statute: Income - Tax Act, 1961

The Board have referred to the amendments brought in by the F.A.1995 to Sections.194A and 194C and insertion of Secs.194J and 194K.

The deduction has to be made in respect of the following items.

1) payments of Rs.20,000 and above made by way of fees for professional services and technical services;

ii)payments in pursuance of contracts of Rs.20,000 and above for advertising , broadcasting,telecasting, transport of goods and passengers and catering;

iii) payment of interest on time deposits with the banks of Rs.10,000 & above

iv) units of mutual funds or of UTI.

In order to avoid hardship in certain categories of assessees following instructions have been issued.

i) that the provisions of TDS be interpreted and implemented liberally.

ii) that an application for non deduction of tax or deduction at a lower rate be disposed of within 3 to 5 working days;

iii) that the form of application prescribed under rules be made available in IT offices, bank counters, post offices, UTI counters etc.

iv) that any grievances on the implementation of TDS provisions be redressed promptly.

The Board have also advised that there should be publicity to the effect that the grievances could be addressed directly to the concerned CCIT or DI(Hqrs), CBDT, New Delhi.