30 May 2011
I hv 1 querry regardin TDS. As u know that bank deducts the TDS on interest given on FDs. Accordingly why the TDS is not deducted on the int. paid on advances by the customer ? Is there any provision regarding this ?
30 May 2011
For advances, there is no provision in Income Tax Act to deduct TDS. on Interest on Bank FD, it is liability of the bank to deduct TDS U/s 194A
30 May 2011
I think the question is creating this question. My thinking is that Mr Pravin Patel is asking the following question:
"If bank are deducting TDS on interest paid by them then why bank's cutomers are not deducting TDS on interest paid on advanced given by banks to their customers." I have presumed that customers means persons who have received the loan from bank. However the question is not very clear and that's why this confusion. I would request the querist to clarify the question so that clear answer can be given.
30 May 2011
Yes, Krishna Kumar sir as you have presumed that "why bank's cutomers are not deducting TDS on interest paid on advanced given by banks to their customers." is the right question of mine.
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