how tax on interest should be deducted in case of hire purchase loans , as we have to give cheques in advance ?
2 Replies
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 06 July 2011
Hi, Harshit you need not to deduct tax for payment of interest in case of hire purchase loan as I think you must not be falling under the category of individual /Huf having turnover as specified u/s 44AB.Contrary to the above you fall with in such category then also you need not to deduct Tds , reason being loan advancing authority must have been company or co-operative society or banking company . For further details you can refer to section 194A of income tax act . 1961.
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 06 July 2011
| Originally posted by : SHASHANK GOYAL | ||
 |
Hi, Harshit you need not to deduct tax for payment of interest in case of hire purchase loan as I think you must not be falling under the category of individual /Huf having turnover as specified u/s 44AB.Contrary to the above you fall with in such category then also you need not to deduct Tds , reason being loan advancing authority must have been company or co-operative society or banking company . For further details you can refer to section 194A of income tax act . 1961. |
 |
agreed
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