Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2015 processing fees taken by bank while advancing loan is liable for TDS..???? if yes, under which section ????

Amol S Joglekar

Amol S Joglekar (Expert)
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22 January 2015 No, it is not liable for TDS.
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Rupesh Jain

Rupesh Jain (Expert)
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22 January 2015 no it is not liable to tds.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 January 2015 agreed with above replies............

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CA ANILKUMAR B.COM ACA DISA

CA ANILKUMAR B.COM ACA DISA (Querist)
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22 January 2015 Interest paid to bank is exempted from TDS. U/s 2(28A)interestmeans, interest payable in any manner in respect of any moneys borrowed or debt incurred (including a deposit, claim or other similar right or obligation) and includes any service fee or other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilised. So no TDS.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 January 2015 As per Sec.194A(3)(iii), interest paid to any banking company to which Banking Regulation Act, 1949 applies is not subject to tax deduction.

Since processing fee is covered under the meaning of interest as defined u/s 2(28A) of the IT Act no TDS required to be deducted.

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