Hi friends,
One of my clients have borrowed loan from LIC Housing Finance Ltd. It has been remitting TDS without deducting Interest. Is my client's act right?
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TDS on interest
Replies (6)
Hi , I think He is right in his action of not deducting Tds on interest being paid to Lic housing finance ltd as it is one of the banking and finance company in india and section 194a does not apply to the banking companies and financial corporations .
The query should have been remitting interest without deducting TDS.
Situation : Borrowal of loan
Payment : Interest other than interest on securities
Relevant section 194A
study the provisions of 194 A. In your case, tds not to be deducted as per 194a banks covered under Banking Regulation Act 1949 is not covered.
agree with mr shashank
| Originally posted by : Phalgun | ||
 |
The query should have been remitting interest without deducting TDS. Situation : Borrowal of loan Payment : Interest other than interest on securities Relevant section 194A study the provisions of 194 A. In your case, tds not to be deducted as per 194a banks covered under Banking Regulation Act 1949 is not covered. |
 |
hi. shashank
i m agree with you
No he need to DEDUCT tds on interest bcz LIC is not a bank
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