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TDS on Intt. other than intt. on securities

28 January 2010

If I have financed some vehicle from a NBFC instead of any Banking company, How to deduct tax on the Interest component in the EMI paid to the NBFC. please clarify the computation of TDS, if applicable and treatment of the same.

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Amir (Learner) (4016 Points)
Replied 28 January 2010

Dear Pankaj,

TDS will be applicable where if NBFC does not fall under any of the following -

(a) any banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies, or any co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank (b) any financial corporation established by or under a Central, State or Provincial Act, or

(d) the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963), or

(e) any company or co-operative society carrying on the business of insurance, or

(f) such other institution, association or body ²⁹[or class of institutions, associations or bodies] which the Central Government may, for reasons to be recorded in writing, notify³⁰ in this behalf in the Official Gazette

TDS will be deducted on the amount of interest which u will be paying/crediting every month.The total amount of Interest u can get from the repayment schedule.

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