Dealing with the writ petition filed by primary agricultural cooperative credit societies, the Madras High Court directed the Finance Ministry and Central Board of Direct Taxes (CBDT) to exempt the petitioners from TDS deduction on cash withdrawals received from the Central Cooperative Bank for distribution to beneficiaries, reports the Live Law.
The court said a further time of six weeks would be granted within which the Ministry of Finance, the Government of India, and the CBDT would decide the request made by the Government of Tamil Nadu for exemption of cooperative societies from Section 194N.
The petitioners are primary agricultural cooperative credit societies and do the business of lending money to the members of the Society for Agriculture and allied activities.