Tds on bank processing fees should be deduct or not

TDS should be deduct or not on Bank Processing Fees U/s 194 J.

Replies (5)
Banks are out of the purview of any tds deduction

as per section 194 A any payment made to following are not under obligation to TDS.

 

* Banks, co-operative society in banking business

* LIC

* UTI

* a company or co-operative society engaged in insurance business

* any financial corp. established by central, state act.

 

and so on

 

HENCE INTEREST, PROCESSING FEES PAID TO BANK ARE NOT UNDER OBLIGATION TO TDS

Mr. Tax pandit 

Section 194 A only for interest and Processing fees are not part of  Interest so its not cover in sec.194 A.

ANd Mr.PRitam Jain

I know bank out of TDS Purview but can u tell me or reffer any circular or notification either income tax act or banking reg. act. , in which mentioned there is no deduction of TDS liability on Processing fees.

Umesh,

I invite your attention to section 197A(1F). Following payments, inter alia,  made to a bank excluding a foreign bank will not be subjected to TDS under section 194J:

bank guarantee commission

cash management services

depository charges

MICR charges.

Thanks,

Thanks to all

I got it.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 07 November 2026
Article Assisstant

DPV & Associates

Chennai

CA Inter

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
Featured 29 October 2026
Accounts Executive

Synergy Keystone

Chennai

B.Com

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details