TDS on Interest on Loan
This query is : Resolved
20 July 2010
My Friend'CA told him to deduct TDS on Interest on car loan u/s 194A. I just want to know whether the Contention of CA is right.
20 July 2010
Yes. He is right. TDS to be deducted u/s 194A.
20 July 2010
Please also note Interest on loan is covered to TDS u/s 194A of the Income tax Act. However, as per Sec.194A(3)(iii), interest paid to any banking company to which Banking Regulation Act, 1949 applies is not subject to tax deduction. Thus, any interest on car loan obtained from banks are not subject to TDS.
21 July 2010
I agree with Expert
21 July 2010
194A doesn't apply to individual/HUF unless their total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such interest is credited or paid.
So, if the individual/ HUF is not in any business/ profession, they need not worry for deducting TDS
So, if the individual/ HUF is not in any business/ profession, they need not worry for deducting TDS
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