TDS Deduction on intt. on Loan Repayment

Pls elaborate ur query.

for interest on any loans paid to Financial Institutions INTEREST IS NOT LIABLE UNDER 194A

Read that particular section, point by point you will get it 

u r giving interest so there is no question to deduct tds 

Exemption is provided to the following i. e. no TDS on interest paid to them:

to such income credited or paid to—

      (a)  any banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies, or any co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank), or

      (b)  any financial corporation established by or under a Central, State or Provincial Act, or

      (c)  the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956), or

      (d)  the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963), or

      (e)  any company or co-operative society carrying on the business of insurance, or

       (f)  such other institution, association or body ⁷⁸[or class of institutions, associations or bodies] which the Central Government may, for reasons to be recorded in writing, notify⁷⁹ in this behalf in the Official Gazette;

If Reliance money does not fall in above then TDS deductible.

Reply of Aditya Maheshwari is self explanatory.

Dear All

I am 150% agree with aditya sir,

my employer also taken money from Reliance Capital Ltd. and India Bulls , We are paying Interest to them, On Interst we are deducting TDS and get the refund from them after depositing the TDS Certificates

Thnks

TRILOCHAN

Dear Shiva Shiva

You should know the difference between NBFC and Financial Institutioin.

Reliance Capital Ltd is a NBFC Company not a financial Institution

You should deduct TDS on Interest paid to them.

NBFC is not exempt under section194A

Thanks

TRILOCHAN

Agreed with Mr. Aditya Maheshwari TDS will be deduted u/s 194A on payment made to Reliance money towards interest .

Dear Gaurav

TDS is deducted on the payment made to the Reliance, if loan repayment of any nationalised bank than the same is not applied but the reliance money is not bank it is a financial institution hence the same is applicable.

Dear gourav

Aditya sir is right.As  TDS on interest is deducted when the payment is made to any NBFC & any financial instituion which is not a Banking organisation.

 THE COVERAGE OF INTEREST OF LOAN IS COVERED U/S 194A ( INTEREST ON INTEREST OTHER THEN SECURITIES) ,IF THE  INTEREST AMOUNT EXCEEDS RS 5000 THEN TDS WOULD BE DEDUCTED PROVIDED THE PAYER IS A CORPORATE ASSESSE OF AN INDIVISUAL OR HUF COVERED UNDER TAX AUDIT U/S 44AB.

ON INTEREST PAID TO RELIANCE MONEY ON LOAN REPAYMENT, TDS IS DEDUCTABLE

TDS needs to be deducted and deposited on interest component included in the loan repayment.

fine accepted