Tds on emi paid to finance institutions

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Guest

Guest (Querist)

22 February 2014 Dear Experts,
When EMIs are paid to Finance institutions it becomes difficult to deduct TDS. Considering it is @ 10% of interest paid, it has to be paid out of pocket of the assessee.
Most institutions do not cooperate when form 26A is requested from then. Is there any remedy?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 February 2014 see it is not that it has to be paid out of the pocket of the assessee in terms of additional burden. you need to deduct the tax amount from the amount payable to the financial institution. With regards to form 26AS, yes it is a problem..but then what can you do about it except for keep following up with the deductors.

Guest

Guest (Querist)

25 February 2014 Thanks for the reply. BTW I was referring to Form 26A (CA certificate where the payer does not have to deduct TDs is payee has paid tax on it and filed return before due date)

Nikhil Kaushik

Nikhil Kaushik (Expert)
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26 February 2014 Well I thought you just missed the "s". well regarding 26A, yes thats the problem, that is why it is important that you deduct TDS in the first place itself!

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