Tds on interest on car loan
This query is : Resolved
23 April 2012
DEAR EXPERTS,
I AM WORKING IN A PARTNERSHIP FIRM.
RECENTLY OUR FIRM HAS AVAILED CAR LOAN ON 29.03.2012 FROM AXIS BANK FOR AN AMOUNT OF RS. 30 LAKHS.
THE REPAYMENT STARTS FROM IST MAY 2012 WITH
EMI OF RS. 74000/- (INCLUDING INTEREST).
THE INTEREST FOR THE WHOLE FINANCIAL YEAR EXCEEDS RS. 10000/-.
MY QUERY IS:
SHOULD TDS BE DEDUCTED ON THE INTEREST PART WHICH IS INCLUDED IN MONTHLY EMI.
IF YES UNDER WHAT SECTION AND AT WHAT RATE?
KINDLY GUIDE ME PROPERLY.
THANKING YOU.
I AM WORKING IN A PARTNERSHIP FIRM.
RECENTLY OUR FIRM HAS AVAILED CAR LOAN ON 29.03.2012 FROM AXIS BANK FOR AN AMOUNT OF RS. 30 LAKHS.
THE REPAYMENT STARTS FROM IST MAY 2012 WITH
EMI OF RS. 74000/- (INCLUDING INTEREST).
THE INTEREST FOR THE WHOLE FINANCIAL YEAR EXCEEDS RS. 10000/-.
MY QUERY IS:
SHOULD TDS BE DEDUCTED ON THE INTEREST PART WHICH IS INCLUDED IN MONTHLY EMI.
IF YES UNDER WHAT SECTION AND AT WHAT RATE?
KINDLY GUIDE ME PROPERLY.
THANKING YOU.
24 April 2012
NO need to deduct TDS , as the section 194A"interest other than interest on securities', exempted in case of any interest paid to banking companies.
30 April 2012
The expert is correct and NO TDS is deducatable
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