04 December 2014
Interest on loan is covered to TDS u/s 194A of the Income tax Act. However, 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. Thus, any interest on car loan obtained from banks are not subject to TDS. But it must be remembered that Interest paid to non banking finance companies, the TDS is applicable u/s 194 A.
05 December 2014
just keep in mind a simple funda that any payment made to the government and banks is out of the tds ambit......so tds is not applicable on such payments.
CAclubindia
