Tds on interest paid to non financial institution

Save Share

This query is : Resolved

dhaval (Querist)

24 June 2014 One of my client had taken loan from cholamandalam investment and finance company. That client fall under audit. Is he required to deduct tax on interest paid to cholamandalam finance company as the interest paid by my client to non banking institution.

If yes then is there any other way by which my client come out tds deduction matter in respect of interest paid?

Nikhil Kaushik

Nikhil Kaushik (Expert)

24 June 2014 yes, you need to deduct TDS in this case under section 194A

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

24 June 2014 sec 194A is applicable in this case...............................

dhaval

dhaval (Querist)

24 June 2014 one of my c.a. friend told me that those non financial institution get certificate from income tax department to for non deduction of tax on interest. is it true?

Nikhil Kaushik

Nikhil Kaushik (Expert)

24 June 2014 that is for the deductee to bother about. unless deductee provides you with the exemption certificate, your duty to deduct is mandatory.,

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

24 June 2014 that is nt for non financial instituition but for deductee u/s 197.