Tds on interest on loan taken from nbfc

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Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2016 whether it is mandatory to deduct tds on loan taken from nbfc?

if no, please provide some cases related to matter where tds was not deducted on interest on loan taken from nbfc.

Ankur Singhal

Ankur Singhal (Expert)
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04 March 2016 Dear
As per Section 194A of the Income Tax Act, 1961 a business enterprise (proprietary concern covered u/s Section 44AB, company, firm, etc) has to deduct tax (TDS) on the interest payable towards the loan from NBFCs.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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05 March 2016 If interest paid more than Rs.5000/- TDS to be deducted 10% u/s194A

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Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2016 thank sir
but please provide some case law in which tds had not been deducted by party on interest on loan taken from nbfc in ignorance of sec 194A and what are judgements related to that cases