Applicablity of Tds in vehicle loan

This discussion clarifies the applicability of Tax Deducted at Source (TDS) on interest paid for vehicle loans. Generally, TDS is not applicable to interest paid on vehicle loans, especially when taken from banks. However, if the loan is from an individual or entity other than a bank, TDS may apply at a rate of 5% or 10% under specific sections like 194A, particularly if the interest payment exceeds certain thresholds.