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Tds - interst portion on car finance

This query is : Resolved 
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(Querist)
18 December 2012 Dear Distingwished Experts,

Please enlight my knowledge about the followings:

1. Our coperate House has financed a car from Kotak Mahindra Bank (Kotak Mahindra Prime Ltd).

We want to know, wheather the interst portion paid in each installment; is liable to TDS under Income Tax Act? If yeas @ what rate? If no then under which provisons , this TDS liability is exempted?

Do help me out.

Thanks & Regards
Siddharth
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CA Manoj vijay

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CA Manoj vijay (Expert)
19 December 2012 No.As per Sec. 194 A of income tax act, 1961 No Liability to deduct the TDS on Payment of interest to any Banking company engage in the Banking Business, Public financial Institute, LIC, insurance company, or notified institution.
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Soumitra Basu

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Soumitra Basu (Expert)
19 December 2012 under section 194A - 10%.
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CA Manoj vijay

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CA Manoj vijay (Expert)
19 December 2012 But my dear no TDS liability in Siddharth`s case
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Soumitra Basu

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Soumitra Basu (Expert)
19 December 2012 I thought the lender is Kotak Mahindra Prime Ltd.
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Siddharth Nanda

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Siddharth Nanda (Querist)
30 May 2013 Thanks Mr.Vasu, Of course it is Kotak Mahindra Prime Ltd.

Regards
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