TDS on loan processing fees payable to bankers (Income Tax)

This query is : Resolved

neetu

( Author )
01 April 2008

What is the meaning of interest for TDS U/S 194A.If you suggest that meaning of interest as define in section 2(28A),whether we should deduct TDS on Processing Fess U/S 194J or not,If there are any case law, please advice.

Reetika Goel

( Expert )
01 April 2008

As per section 2(28A), loan processing fee shall be included into interest amount and will be eligible for deduction u/s 24(b) of the IT Act, 1961.

Since it is considered as a part of interest and assessee is eligible for claiming its deduction considering it as interest charges, its TDS should be deducted and that is also u/s 194A.