Tax Deducted from Interest paid on loan
This query is : Resolved
Vinod Sawant-Bhosale
(Querist)
10 June 2011
Sir,
My client is partner in Firm, he purchase car on loan from TATA Capital Ltd. car shown in Firm payment made from firm.
My query is this interest amount attract TDS ? if yes can I show interest as expense in firms account? Loan in the name of partner it is possible to deduct TDS in firm?
My client is partner in Firm, he purchase car on loan from TATA Capital Ltd. car shown in Firm payment made from firm.
My query is this interest amount attract TDS ? if yes can I show interest as expense in firms account? Loan in the name of partner it is possible to deduct TDS in firm?
s v rajesh
(Expert)
10 June 2011
Hi,
TDS on Interest paid to banks for any service is excluded from income tax (TDS) provisions.
TDS on Interest paid to banks for any service is excluded from income tax (TDS) provisions.
10 June 2011
Tata Capital Ltd is not a bank.
Amit Bohra
(Expert)
12 June 2011
Mr. K.K. Daruka, you are rignt Tata Capital is not a bank, but it's a private financing company, Now if firm/company pays interst on vehicle loan or housing loan then will TDS applicable on interest part ?.
12 June 2011
Mr Amit Bohra. Private financing companies are not exempted from TDS. Even if you are paying EMI you have to pay TDS seperately on the interest part of EMI and claim it back from the company. I know about many private finance companies including Tata Capital who are regularly paying back the TDS amount on production of Form 16A.
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