TDS ON EMI TO BANKS

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This query is : Open

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This discussion clarifies whether Tax Deducted at Source (TDS) applies to the interest component of Equated Monthly Instalments (EMIs) when loans are taken from financial institutions, government banks, or private banks for assets like cars or machinery. The consensus is that TDS is not applicable if the payee is a bank.

PARDEEP KAPIL

PARDEEP KAPIL (Querist)
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17 November 2023 Dear Sirs - please let me know - (1) Is TDS is deductible on interest part , if loan is taken from financial institutions and paid on EMI basis for car, term loan for machinery.... (2) Similarly Is TDS is deductible on interest part , if loan is taken from *Government / Private Banks* and paid on EMI basis for car, term loan for machinery... Kind Regards