November 2023
A bank can receive Form No. 15G and need not deduct tax at source only in the cases, where the declaration is given that the tax liability on total income including the interest income will be Nil provided the interest income does not exceed the basic exemption limit. But where the interest income exceeds the basic exemption limit, the bank needs to deduct tax at source notwithstanding the furnishing of declaration in Form No. 15G and the bank will be treated as assessee in default u/s 201(1), where not only it failed to deduct tax at source but the customer also failed to pay such tax directly.
37 Bank of India vs. DCIT (TDS)
TS-582-ITAT-2023 (Nag.)
A.Y.: 2012-13
Date of Order: 28th August, 2023
Sections: 191, 194A, 197A, 201(1A)
A bank can receive Form No. 15G and need not deduct tax at source only in the cases, where the declaration is given that the tax liability on total income including the interest income will be Nil provided the interest income does not exceed the basic exemption limit. But where the interest income exceeds the basic exemption limit, the bank needs to deduct tax at source notwithstanding the furnishing of declaration in Form No. 15G and the bank will be treated as assessee in default u/s 201(1), where not only it failed to deduct tax at source but the customer also failed to pay such tax directly.
FACTS
The assessee bank was required to deduct tax at source under section 194A of the Act. Based on spot verification, it was found that in four cases, the assessee has not deducted tax at source in respect of amounts paid/credited in excess of basic exemption limits on the ground that the
