TDS on Interest

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madan (Querist)
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21 January 2008 I take loan from NRI Rs.1000000/- In that I paid interest Rs.120000/- for year. In that I deduct TDS or Not? incase tds deduct please tell section in act? and howmuch percentage we deduct TDS if compulsary.

CA. Vineet Grover

CA. Vineet Grover (Expert)
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21 January 2008 Hi Madan,

TDS on interest shall be applied u/s 195 as the assessee is an NRI. If the assessee hadnt been an NRI, TDS wld have been levied u/s 194A. The tax rate shall be 30.9 (if total payment does not exceeds 10 lacs)or 33.99 (if total payment exceeds 10 lacs)

Rgds/
Vineet