T d s on payment of interest to nbfc on housing loan availed
This query is : Resolved
JITHESHKUMAR N DAND
(Querist)
09 October 2013
One of My friend has availed an housing loan from N B F C (Non Banking Financial Corporation). he is paying E M I Comprising of Principal amount and interest thru his S B account maintained with a Nationalised Bank. I would like to know whether the provision of Section 194 A ( T D S on interest ) applicalbe in his case.
Kindly guide me in the above.
One of My friend has availed an housing loan from N B F C (Non Banking Financial Corporation). he is paying E M I Comprising of Principal amount and interest thru his S B account maintained with a Nationalised Bank. I would like to know whether the provision of Section 194 A ( T D S on interest ) applicalbe in his case.
Kindly guide me in the above.
CMA Ramesh Krishnan
(Expert)
09 October 2013
Individual paying housing interest to NBFC not attract TDS. sec.194A is not apply if payer is individual
Nikhil Kaushik
(Expert)
09 October 2013
Dear Jitesh,
As suggested by Ramesh Ji, as such individuals are not required to deduct TDS on repayment of interest on housing loan to NBFC.
However, make sure that such individual if in business or profession has not crossed total sales, gross receipts or turnover from the business or profession carried on by him beyond the the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such interest is credited or paid. Else he shall be liable to deduct TDS under 194A.
As suggested by Ramesh Ji, as such individuals are not required to deduct TDS on repayment of interest on housing loan to NBFC.
However, make sure that such individual if in business or profession has not crossed total sales, gross receipts or turnover from the business or profession carried on by him beyond the the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such interest is credited or paid. Else he shall be liable to deduct TDS under 194A.
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