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?
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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