how tax on interest should be deducted in case of hire purchase loans , as we have to give cheques in advance ?
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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