Tds on interest on loan from kotak mahindra bank prime ltd.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 April 2015 Case : A company taken loan for vehicle from kotak mahindra prime ltd. Is Company will liable to pay interest amount less of Tds to the said concern under section 194A???

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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08 April 2015 Section 194A shall not applicable to the 'interest on loan'. It will applicable only 'Interest on deposits'.

Querist : Anonymous

Querist : Anonymous (Querist)

08 April 2015 kindly explain for the same. co is taken loan from kotak mahindra prime ltd and the said concern is a subsidiary of kotak mahindra bank ltd. is co liable to deduct TDS under 194A or not??

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CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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08 April 2015 Sir,
TDS provision under section 194A will not applicable to the loan from bank or its subsidiary.

It will applicable only for deposits i.e., fixed deposit with banks

You taken loan and it is not fixed deposit. Therefore, you cannot deduct the TDS u/s. 194A

Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2015 Thank you sir for the above.
Can I get any notification or documentary proof for the same??
I will be grateful to you.

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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13 April 2015 You can refer sec. 194A of Income Tax Act, 1961
The full text of the section is available www.incometaxindia.gov.in