TDS on interest on loan kotak Mahindra prime ltd

Case : A company taken loan for vehicle from kotak mahindra prime ltd. is tds deducted on interest amount to be paid on this
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Quick Summary
This discussion clarifies whether Tax Deducted at Source (TDS) applies to interest paid on vehicle loans taken from Kotak Mahindra Prime Ltd. While TDS on interest is generally covered under Section 194A of the Income Tax Act, there's a specific exemption for interest paid to financial institutions. Therefore, no TDS is typically deducted on interest paid to NBFCs like Kotak Mahindra Prime Ltd.

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TDS shall be deducted u/s 194A of Income Tax Act 1961. For refund of the TDS amount, TDS certificate can be submitted with the mentioned NBFC.

Originally posted by : mukesh rana
Case : A company taken loan for vehicle from kotak mahindra prime ltd. is tds deducted on interest amount to be paid on this

No TDS on interests paid to financial institutions as it is specifically exempt u/s 194A.

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