TDS on Commercial Vehicle Loan used for business by Proprietor
This query is : Resolved
16 August 2023
Hello, Could anyone please help me on the below query
A proprietor took a loan for Commercial Vehicle Loan for business use from Cholamandalam Investment & Finance Co. Ltd. Yearly the interest happens to be around Rs.74912/-.
Should we deduct TDS on the Interest paid to Cholamandalam?
A proprietor took a loan for Commercial Vehicle Loan for business use from Cholamandalam Investment & Finance Co. Ltd. Yearly the interest happens to be around Rs.74912/-.
Should we deduct TDS on the Interest paid to Cholamandalam?
16 August 2023
Yes, TDS u/s. 194A is applicable.
However, only if, an individual or a HUF, whose total sales, gross receipts or turnover from the business or profession carried on by him/it exceeds Rs. 1 crore in case of business and Rs. 50 lakhs in case of a profession1 during the financial year immediately preceding the financial year in which the aforesaid amount is credited or paid, shall be liable to deduct tax under section 194A.
However, only if, an individual or a HUF, whose total sales, gross receipts or turnover from the business or profession carried on by him/it exceeds Rs. 1 crore in case of business and Rs. 50 lakhs in case of a profession1 during the financial year immediately preceding the financial year in which the aforesaid amount is credited or paid, shall be liable to deduct tax under section 194A.
16 August 2023
TDS not applicable in this financial institution interest...
Please confirm
16 August 2023
The instances where no tax is to be deducted u/s. 194A IT act. are as follows:
Interest paid to any banking company to which the Banking Regulation Act, 1949, applies, or any co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank).
Interest paid to any financial corporation established by or under a Central, State or Provincial Act.
Interest paid to the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956.
Interest paid to the Unit Trust of India established under the Unit Trust of India Act, 1963.
Interest paid to any company or co-operative society carrying on the business of insurance.
Interest paid to any other institution, association or body or class of institutions, associations or bodies which the Central Government may notify.
Interest paid by a co-operative society (other than a co-operative bank) to a member thereof or to such income credited or paid by a co-operative society to any other co-operative society.
Thus TDS deduction over NBFC is not exempted.
Interest paid to any banking company to which the Banking Regulation Act, 1949, applies, or any co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank).
Interest paid to any financial corporation established by or under a Central, State or Provincial Act.
Interest paid to the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956.
Interest paid to the Unit Trust of India established under the Unit Trust of India Act, 1963.
Interest paid to any company or co-operative society carrying on the business of insurance.
Interest paid to any other institution, association or body or class of institutions, associations or bodies which the Central Government may notify.
Interest paid by a co-operative society (other than a co-operative bank) to a member thereof or to such income credited or paid by a co-operative society to any other co-operative society.
Thus TDS deduction over NBFC is not exempted.
17 August 2023
Thank You Very Much Sir
17 August 2023
You are welcome.
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