18 April 2014
Dear Sir, We are partnership Firm. During FY13-14 we paid Intt. of Rs. 25550/- on car loan to a financial institution in 12 instalments but we did not deduct any TDS. Can we deduct TDS on 31-03-2014 on Rs. 25550/- at once or we have to deduct on monthly basis and deposit with intt.@1.5% and revise our previous TDS return.
19 April 2014
In my opinion , you may not need to deduct tds at all. Reason being that most of the such type of financial institutions have obtained exemption from tds on interest, these being mostly NBFC or Banking Companies. So check with the concerned financial institution, if they are exempted. For your assurance, you may demand from them the copy of exemption granted by Income Tax Deptt or any other relevant certificate on the matter.
22 April 2014
Dear Nikhil, In our clients cases, we have found that all big NBFC mostly have obtained exemptions , the basis being that their regular business is lending, and they pay their due taxes in regular self assessment. So it depends in particular case, by verifying facts of the case
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