TDS
This query is : Resolved
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 ?
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
Interest paid to banks is not liable for TDS as per section 194A(3)(iii) of the Income Tax Act.
Amit Bohra
(Expert)
30 May 2011
U/s 194 A, if interst paid during the financial year is more then Rs. 5000/- then TDS needs to be dedcuted @10%.
if you pay interest to your cusmoter on advances given by them is more then Rs. 5000/- then TDS will be attracted.
if you pay interest to your cusmoter on advances given by them is more then Rs. 5000/- then TDS will be attracted.
30 May 2011
My reply was for interest paid to banks. Interest paid to customers will attract TDS.
CA. Krishna K Neeraj
(Expert)
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.
"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.
"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.
30 May 2011
Then my answer stands same as follows:
Interest paid to banks is not liable for TDS as per section 194A(3)(iii) of the Income Tax Act.
Interest paid to banks is not liable for TDS as per section 194A(3)(iii) of the Income Tax Act.
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