Please suggest,

Whether TDS to required for payment of interest on loan taken from foreign banks?

Ms.Pallavi Vohra

Your question is not clear.  Are you talking of interest paid to Indian Branches of Foreing Banks or interest paid on loan obtained from Non Resident Foreign Banks.

Best Wishes

Sathikonda

SO FAR I HAVE UNDERSTOOD YOUR QUESTION ...YOU WANT TO KNOW WHETHER TAX IS TO BE DEDUCTED ON INTEREST PAYMENT MADE TOWARDS LOAN INTEREST  FOREIGN BANKS ....

 TAX IS NOT DEDUCTIBLE ON PAYMENT OF INTEREST ON  LOAN TAKEN FROM  BANKS

Total thanks : 1 times

 My question is for interest payment to non resident foreign banks.

 Mr. Sanjay how can we justify this..............means can we say that as  a like income is not chargeable to tax in India???

Ms.Pallavi Vohra

First of all it has to be determined whether the interest paid to non-resident foreign banks is taxable in India? To determine the matter please make a list of answers by going through the section 5, section 9 and section 195 and also DTAAs with the concerned countries.  Then you will get the clarification.

Best Wishes

Sathikonda

INCOME IS DEFINATELY CHARGEABLE TO TAX IN INDIA ......TAXATION OF INCOME OF THE FOREIGN BANKS  OR FOR THAT MATTER INDIAN BANKS  IS A DIFFERENT MATTER ALTOGETHER... IT HAS DIFFERENT PROCEDURE TOOO

FOREIGN  OR  FOR  THAT   MATTER INDIAN BANKS TOO  ARE TAXED FOR THE PROFITS ....BUT TAX IS NOT DEDUCTED ON PNTEREST PAID TO THEM FOR THE LOAN ...

IF YOU ARE STILL NOT SATISFIED ..WRITE BACK TO ME....

Total thanks : 1 times

Mr.Sanjay Kumar

Please enlighten me on the issue of  "Tax is not do be deducted at source on interest paid to Non Resident Foreign Banks on the loan obtained by an Indian Company/Firm".

Anticipating an early reply from you,

Best Wishes

Sathikonda