TDS U/s. 194R - Applicability on One Time Settlement (OTS) transactiions

This query is : Resolved

ABDUL SALAM (Querist)
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02 July 2022 Dear Expert,

Could you please provide me some education on the subject with an example....

Thanks & Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 July 2022 One time settlement to whom.

ABDUL SALAM

ABDUL SALAM (Querist)
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02 July 2022 Dear Sir,

Scenario (example):
a) ABC Bank has given a loan to XYZ Company (domestic company) on 01.06.2000.
b) The loan has became NPA on 31.03.2022.
c) The outstanding amount of the loan as on 30-06-2022 was Rs.10.00 Cr. (Principal of Rs.4.00
Cr. & Interest of Rs.6.00 Cr.).
d) The bank has sanctioned OTS for an amount of Rs.8.00 Cr. on 02.07.22.

Hope I am clear with the above example. I am looking from the perspective of the banker.

Thanks & Regards,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 July 2022 194R TDS not applicable in such a settlement.

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