Whether tds is to be deducted?

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This query is : Resolved

Akshay (Querist)

19 December 2014 One of my client having car rental business taken loan from tata capital finance and icici bank for the purpose of purchase of vehicle. The interest payable on such loan is going more than 10000 RS. whether tds is required to be deduced or not? If yes then how can bank manage their installments as per repayment scheduled?

CA Kumar Mukesh

CA Kumar Mukesh (Expert)

20 December 2014 TDS required to be deduct under section 194A, if assessee is other than Individual or HUF, on interest paid to TATA capital being NBFC are not covered under 196 of Income Tax Act, 1961.

For Individual and HUF required to deduct TDS if he/she covered by provision of tax audit under section 44AB in previous financial year

No TDS required to be deducted for the interest payment made to ICICI bank

Rupesh Jain

Rupesh Jain (Expert)

20 December 2014 your client is doing business as INdividual/HUF and his gross reeipts in last year exceeds rs. 100 lacs
then you have to deduct the tds on intt. pay exceed rs. 10000/- to non banking company like tata capital finance in your case.
in if he is firm/PVT ltd/ LTD company then you have to deduct the tds w/o considering the sales of last year.

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