Interest on Loan

Interest paid on Loan to Citibank (Foreign Bank)

Is TDS applicable ?

Any reporting required for such transactions in TDS statement
Replies (7)
THERE IS NO REQUIRMENT OF TAX DEDUCTION ON INTEREST...... PAID ON LOAN TAKEN FROM BANKING COMPANY....
Thanks Pushp,

Any reporting required in TDS return

Loan from foreign bank
NO ....THERE IS NO SUCH REQUIRMENT
Any certificate required from Foreign Bank for Audit purpose
SIR....ARE YOU LIABLE FOR TAX AUDIT
yes...............
AS PER PROVISIONS OF SECTION 43B...YOU HAVE TO PAY THE AMOUNT OF INTEREST ON LOAN ON OR BEFORE FILING RETURN U/S 139(1) ...THERE IS A CLAUSE IN TAX AUDIT REPORT WHERE PAYMENT OF STATUTORY DUES AND INTEREST IS MANDATORY BEFORE FILING RETURN ..... THESE EXPENSES ARE ALLOWED ON ACTUAL PAYMENT BASIS ..(NOT ON ACCRUAL BASIS)....THEREFORE YOU ARE REQUIRED TO GET INTEREST CERTIFICATE ...TO SHOW THE AUDITOR THAT INTEREST IS PAID ..AND SHOULD BE ALLOWED AS EXPENSE..

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