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Withdrawal of Circular No. 10/2018 dated 31-12-2018 on applicability of Section 56(2)(viia) of the Income Tax Act, 1961 for issue of shares by a company in which public are not substantially interested

notification no. 63/2019

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In terms of section 194A(1), The time of deduction of tax u/s 194A(1) is undisputedly time at which interest is to be credited to account of payee or when it is paid in cash/cheque or draft therefore, deduction of tax at source on interest income before close of financial year concerned as provided under section 194A(4) would not obligate assessee bank from penalty for not deducting tax at source at time of credit of said income in payee’s account – HC Allahabad

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