sir, interest paid to bank is subject to TDS deduction or n

This query is : Resolved

laxman (Querist)
Follow

23 March 2011 sir
can u give me reference of circular no.

city financial is covered under banking regulation act or not

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

23 March 2011 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.

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
Follow

24 March 2011 Hi,

Agreed with the Expert

Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

Upgrade to CAclubindia Pro. Subscribe Now!

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
Follow

26 March 2011 You cannot deduct TDS on any loan transaction by the bank to whom Banking regulation ACt applies..

Interest transactions were subject to tax unless it is specifically exempted and this kind of transaction were specifically exempted Group....