Please Help: income tax
Posted Date : 03-Aug-2014 , 02:23:40 pm | Posted By: SUNIL AGRAWAL
Category :
Income Tax | Answers :
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I would like to know "whether TDS applicable on payment of Interest on Car Loan to private finance co. ie. cholamandalam DBS finance co. / magma Finance co. etc. ?"
If YES, let me infrom under which Section / Sub-section / Clause / Sub- clause / Notification / Circular, it has to be done? if we had not deducted tds. what treatment will be done. |
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Answers:
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 Answer by: AKHIL MAHESHWARI |
| Dear Sunil, as per Section 194A, the above condition is within the ambit of TDS provisions, if the payment is not done by an individual or HUF. Hence, TDS would be applicable on payment of interest on car loan to private finance company not being not being the banking company to which the Banking Regulation Act, 1949 applies.
For reference, see extract: Section 194A INTEREST OTHER THAN "INTEREST ON SECURITIES". (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of interest other than income by way of interest on securities, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force.
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| Comments |
| Posted By : MANOJ KUMAR AGGARWAL |
05-Aug-2014, 11:49:15 |
| yes TDS is applicable on interest part u/s 194.if you did not deduct tds than the interest amt.disallowed.
second option now deduct tds with interest month wise plus late return fees u/s 234E if you did not pay late fees and file tds return than you will get notice u/s 234E. M No.09910652297 |
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