TDS on NRI Interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2011 A resident Indian has taken loan from NRI. and he is not covered u/s 44AB for deduction of TDS.

Now question is

Whether payment to NRI in India rupees attracts TDS provision u/s 195 of IT Act as Resident India does not have TAN no? Whether he should apply for TAN No

In the above case, if loan is taken in indian Rupee from NRI (Ordinary Account)TDS is required to be deducted

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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17 June 2011 Yes the resident Indian should apply for TAN and deduct TDS.

Also the applicable provisions of FEMA applicable for loan from NRI also should be taken care of.

Anuj
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