The Assessee has made payment of EMI of Vehicle Loan with interest and principal to Reliance Capital Ltd. The interest for the year exceed Rs 5000/- Limit. In such a case whether the assessee is require to Deduct Tax At Source(TDS) from such payment?
If not whether any exemption is given to Rel Capital Ltd.
07 August 2008
There are certain exemptions to Sec 193A for TDS deduction on interest other than interest on securities. In case if the interest is paid to Banking Company, Public financial institutions, co-operative society engage in the business of banking. Then there is no need to deduct the TDS on interest paid.
SANJAY, just check whether REL capital Ltd is covered as public financial institution. If yes then Section 193A is not applicable otherwise yes.
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