TDS ON EMI TO BANKS


This query is : Open 

Quick Summary
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.

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




Manish (Expert)
17 November 2023 No, TDS does apply if the payee is a bank.

RAJA P M (Expert)
17 November 2023 No, TDS not applicable.


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