If we take personal loan from financial institution. I pay interest amount that cross rs. 5000 than can I deduct TDS.
vineet kumar jha (B.Com) (29 Points)
23 February 2015If we take personal loan from financial institution. I pay interest amount that cross rs. 5000 than can I deduct TDS.
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 23 February 2015
Hello,
Interest on loan is covered to TDS u/s 194A of the Income tax Act. However, as per Sec.194A(3)(iii), interest paid to any banking company to which Banking Regulation Act, 1949 applies is not subject to tax deduction.
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