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TDS on interest

sumit goyal (15 Points)

10 September 2019

Is TDS applicable on interest payment to bank ?

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3 Replies

Pranav Aggarwal (525 Points)
Replied 10 September 2019

nooooooooooooooooooooooooooo

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Aman Shivharey (78 Points)
Replied 10 September 2019

no but if it is nbfc yes

Suresh Thiyagarajan (Student) (3986 Points)
Replied 11 September 2019

1. Sec 194A deals with deduction of TDS @ 10% with respect to payment of interest other than interest on securities.
2. Payment of interest to banks for the amount borrowed is specifically excluded under sec 194A.
3. Hence, no need for deduction of TDS when interest is paid to banks. However, interest paid to NBFC is tax deducted.
Please correct me if the above solution has an alternative view.