Welcome To Nidhi Limited Company
A nidhi company is a type of company in the Indian non-banking finance sector, recognized under section 406 of the Companies Act, 2013. Their core business is borrowing and lending money between their members. They are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company.
Securities For Investors in Nidhi Company
Computation of Interests
The deductor or the payer should deduct TDS if the amount of interest paid during the previous year exceeds INR 40,000 for banks and INR 5,000 in other cases.
The deductor is required to pay TDS when the interest is accrued if the deposit is for more than a year and the interest is compounded. This is applicable regardless of whether the same is paid or not.
Rates for TDS
The following rates of taxes will be applicable as required:
• 10% as TDS will be applicable when PAN is furnished.
• 20% as TDS will be applicable when PAN is not furnished.
• The amount of surcharge, Education Cess and SHEC will not be added to the above rates. Hence, taxes will be deducted at source at the basic rate.
The following is the time limit in which TDS must be deposited:
• Tax deducted during any months between April to February is required to be deposited on or before the 7th of the immediate month.
• Taxes deducted in the month of March is required to be deposited on or before the 30th of April.
APKUBER NIDHI LTD a Nidhi company doing the business of lending and borrowing with its members or shareholders. Thus if you want to deposit any amount in a NIDHI Company or want to avail a loan from a NIDHI Company, first you have to become a member by subscribing to shares of the Company.
Dhayari Branch, Pune
Viman Nagar Branch
Deccan Gymkhana Branch