Case Law Analysis
|Bombay High Court
Section 194A(3)(v) TDS exemption applies to interest paid by co-operative banks to non-member co-operative societies | Co-operative bank interest payments : Bombay HC
Co-operative banks are not liable to deduct TDS on interest they pay to non-member co-operative societies under Section 194A(3)(v). The Bombay High Court set aside the ITAT order that treated the banks as assessee-in-default, confirming the statutory exemption. The ruling relieves all co-operative banks and their non-member society borrowers from TDS obligations.