Tds compliance

Big No...because for payment of Int to Bank the Sec 194A specifically says that no need to deduct tax on such payments....therefore sec 40(a) disallowance ques does not arise at all.....

Dear Farruk,

If the interest is paid to a branch of a foreign bank in India, you may still not deduct TDS.  However, if the interest is paid to a bank outside India (even if it is a branch of an Indian bank outside India) would warrant TDS under Section 195.