TDS 194 to nbfc

This discussion clarifies whether individuals with a turnover exceeding 2 crore are required to deduct Tax Deducted at Source (TDS) under Section 194A when making interest payments to Non-Banking Financial Companies (NBFCs) such as Bajaj Finserv. It addresses the exemption of interest payments to banks and NBFCs from TDS and explores the classification of NBFCs as financial institutions under relevant tax sections.