Tds on emi !

I suppose this is home loan. There is a specific exemption in TDS provision which says no tds to be deducted on payment of interest to bank & nbfcs by individuals

Dear Sir

Its a loan taken by non-individual from Indiabulls (NBFC) and its for hotel.

Regards

Hi Shivani,

Only commercial entities are liable to deduct and pay TDS. It is not applicable to the general public. 

Regards,

Aarav

Yes,  you are liabile to deduct tds U/s 194A at 10% and deposit to the government account. If it is not done, 30% of interest  will be disallowed from your expenditure u/s 40(a) (ia).

 

Practically India Bulls have taken the PDC of the EMI and India Bulls will deposit the same with the whole amount of EMI.

You have to deduct the TDS on interest amount on each EMI as it is fall under section 194A.

Submit the Form 16A to the india bulls and raise a Debit Note of the Same .India Bulls will refund the same to the borrower.

Dear Manoj Sir

Suppose Interest component of EMI is Rs. 100000 then will the company who has taken loan deduct TDS @ 10% i.e. Rs. 10000 and pay 90000 to Indiabulls.

But your reply seems to suggest that Indiabulls has already taken Post dated cheque of Rs. 100000 from company (borrower).

now if company has already given PDC of Rs. 100000, then who needs to deposit TDS to government?

Regards

Borrower will deposit the TDS on account of Lender and submit the Form 16A to India Bulls, they will refund the TDS amount as company has already paid the whole amount without TDS .

Dear Manoj Sir

thank u for ur reply.

But one question sir, why India Bull taking the PDC of gross amount,

Why not give them PDC after deducting TDS?

Regards

(1) First loan is for long term and TDS rate may not be same.

(2) In cae of floating rate of interest amount is not known

Shivaji Sir

Payer is a company

manoj sir

if rate of interest is floating then how can IndiaBulls take PDC !