Tds on interest payment to citi financial u/s 194a

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This query is : Resolved

CA Sanjay Baheti (Querist)

04 October 2012 My client being an Individual has only source of income-Salary Income & Interest income.

Moreover he has taken Housing Loan from CITI FINANCIAL CONSUMER FINANCE INDIA LTD for which he is paying EMI regularly & claiming Deductions towards Interest Payment & Repayment of Principal Loan under section 24 & 80C of I.T. Act respectively for each Asstt Year from his GTI.

He has given standing instruction to said Financial Co for debiting EMI through ECS on 5th of each month.

Further He has claimed Rs.88852/- towards Housing Loan Interest for Asstt.year 2012-13 as per Interest Certificate from the said Financial Co.

Now query is whether any TDS on Such Interest Payments is liable to be deducted as per section 194A of the I.T.Act.so far my assesse is concerned as deductor and how this obligation can be meet out as he has paid such Interest along with principal Loan Repyment in form EMI as per Agreement.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

04 October 2012 The assessee is not the tax audit case according to the section 44AB. For individuals those covered and make his books of account tax audit in the previous year only required to deduct TDS.
For your case TDS deduction liability not arises.

OM SAI SRI SAI JAI JAI SAI

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