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Tds on interest on loan

ranjitkarmakar (service) (303 Points)

02 April 2016

Dear Sir,

We are paying interest on loan from India Bulls, our accounts are being audited u/s 44AB. so it is compulsary to deduct tds on interest of loan, under section 194A,??

Tax applicbale on (0020) company deductees or (0021) non company dedctees?? please clear my doubts. thanks.......

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3 Replies

ranjitkarmakar (service) (303 Points)
Replied 03 April 2016

please solve my queries

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 18 April 2016

Hello,

TDS is required to be deducted on interest paid to NBFCs u/s 194A of the income tax act if your concern is covered u/s 44AB of the Income tax act or your business exceeds monetary limit of Tax Audit.

(Guest)

The code while deducting TDs on payments to a ltd company "(0020) company deductee" to be used.

India bulls may not allow you to deduct 10% TDS on interest and pay the balance to them. So, you will have to deduct TDS and still pay the whole installment to them.But in most cases the NBFCs refund the total TDS amount after the loan is repaid.