Section 194a

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2018 Dear All,
Pls clarify what is the threshold limit for Tds deduction u/s 194A,

Also clarify we have taken business loan from Tata capital financial services ltd. Whether TDS is to be deduct on interest paid with EMI

Thanks
ASAP

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 May 2018 Payment By Rate of TDS Threshold Limit
Other than banks 10% (If PAN is furnished) Rs 5,000
Other than banks 20% (If PAN is not furnished) Rs 5,000
Banks 10% (If PAN is furnished) Rs 10,000
Banks 20% (If PAN is not furnished) Rs 10,000
(taxadda.com/income-tax/tds-tcs/section-194a-tds-on-interest/)
Yes TDS is required to be deducted @ 10% on interest portion.