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Tds on term loan interest

This query is : Resolved 

05 January 2015 i have borrowed term loan from banking finance company. i am paying EMI comprised of principle and interest. whether i am required to deduct TDS u/s 194A or not?

05 January 2015 In case the payment is to be made to bank / banking finance company tax is not required to be deducted on interest payment made.

05 January 2015 If it is a banking company covered under banking regulations Act no TDS required to be made.

05 January 2015 and if it is not covered under banking regulation Act then it is required to be deducted @ 10% of only interest amount...???

05 January 2015 Yes only on interest potion TDS is to be deducted.

05 January 2015 agreed with the expert


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