Tds - deduction
This query is : Resolved
29 April 2014
Dear experts
Please guide me we have paid EMI to Financial instution after deducting TDS for Interest portion But When precloser of our loan TDS is to be deduct for Preclosure charges? Please advise me
Advance Thanks for your valuable reply.
Please guide me we have paid EMI to Financial instution after deducting TDS for Interest portion But When precloser of our loan TDS is to be deduct for Preclosure charges? Please advise me
Advance Thanks for your valuable reply.
29 April 2014
no as tds is only deducted on int portion.
Nikhil Kaushik
(Expert)
29 April 2014
well yes as such TDS is applicable on pre-closure charges when paid to non-banking financial institutions.
29 April 2014
well nikhil suresh have specifically asked abt financial instituition.
Nikhil Kaushik
(Expert)
29 April 2014
Well Tushar, what did I say...and assuming that I have to include banks, then Interest /closure charges wont attract TDS anyways. Only in case of non-banking financial institutions TDS would apply.
Given that the querist is deducting TDS on EMI, it is safe to assume it is a non-banking financial institution. Accordingly, TDS shall also apply on closure charges.
Given that the querist is deducting TDS on EMI, it is safe to assume it is a non-banking financial institution. Accordingly, TDS shall also apply on closure charges.
29 April 2014
pls read the first line when query starts
"we have paid EMI toFinancial Institution..."then?
"we have paid EMI toFinancial Institution..."then?
Nikhil Kaushik
(Expert)
29 April 2014
please read "after deducting TDS"
Nikhil Kaushik
(Expert)
29 April 2014
further if were to assume that it is a bank, then your first reply is wrong. so pick your sides. My answer is simple. TDS is applicable on closure charges to non-banking financial institutions (which appears to be the case here).
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