194A applicability

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50 Points Posted on 10 May 2021
Whether TDS is applicable on payment of interest to a lender Company who is subsidiary of a Banking Company-Please advise
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On 10 May 2021 at 11:55 Report
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Quick Summary
This discussion clarifies whether Tax Deducted at Source (TDS) is applicable when paying interest to a subsidiary company of a banking firm. The consensus is that no TDS is generally required on interest payments made to a banking company, even if it's a subsidiary, under Section 194A of the Income Tax Act, provided the interest is not from securities.

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13 Points Posted on 10 May 2021
No TDS will be deducted if any interest other than from securities is paid or credited to any banking co.
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On 10 May 2021 at 12:15
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Chartered Accountant
24588 Points Posted on 10 May 2021
Agreed
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On 10 May 2021 at 12:17
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Profession Business
28246 Points Posted on 10 May 2021
Generally while paying TDS ON INTEREST ON LOAN WE DEDUCT TDS @ 10%payable to an assesse.
Sec 194 A.
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On 10 May 2021 at 12:49
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Practice
1361 Points Posted on 10 May 2021
If banking company, then No tds shall be deducted.
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On 10 May 2021 at 13:22
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Profession Business
28246 Points Posted on 10 May 2021

Not necessarily there are seperate provisions for that..

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On 10 May 2021 at 13:27

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