TDS implication

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2010 we are paying EMI to Kotak mahindra Bank towards Car loan taken.
whether TDS u/s 194A is applicable?. and if applicable then how to adjust it against EMI payments

Thanks In Advance

Aditya Maheshwari

Aditya Maheshwari (Expert)
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12 August 2010 Interest paid to banks is not liable for TDS u/s 194A. Hence TDS not deductible.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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12 August 2010 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.

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