Im Doing Audit of Proprietory Concern.
in Which Proprietor Has taken loan from LIC of India Against Insurance Policy
so Shall TDS to be Deduct on Interest on LOAN ??
CHIRAG DEEPAK GANATRA (CA FINAL) (1054 Points)
24 September 2013Im Doing Audit of Proprietory Concern.
in Which Proprietor Has taken loan from LIC of India Against Insurance Policy
so Shall TDS to be Deduct on Interest on LOAN ??
CA Pramod Jain
(manager finance)
(1577 Points)
Replied 24 September 2013
TDS not applicable on interest payment to LIC
CHIRAG DEEPAK GANATRA
(CA FINAL)
(1054 Points)
Replied 24 September 2013
why? any reference???????????????????????????????
Ritzz
(CA Final - Article )
(365 Points)
Replied 24 September 2013
Dear Chirag
Kindly refer to section 194A which clearly says that no TDS has to be deducted on Interest paid/payable to banks, Financial corporation, LIC, Other insurance companies, UTI and other notified institutions.
I hope this resolves your query.
regards
Ashwani Narnoli
(.)
(1843 Points)
Replied 24 September 2013
CA Akshat
(article)
(422 Points)
Replied 24 September 2013
No tax shall be deducted in the following cases –
PO RT A/c, PO time deposit A/c PO MIS, KVP, JVP, NSC
Note: The Senior Citizen Scheme is not notified under this list. Hence TDS shall be necessary. Where a bank or a co-operative bank pays or credits interest on deposits other than time deposits.View Form 26AS TDS Deduction Status Online
Note:
If the payer is (i) a bank, (ii) a co-operative bank, (iii) post office — 10,000/-
If the payer is any other person – 5,000/-
Note: If the payer is bank / co-operative bank / housing finance company, the exemption limit of Rs. 10000 or 50000 shall be applied separately to each branch of payer.
Adjustment of excess / deficiency:
The payer can increase or reduce of amount of TDS so as to adjust previous excess / short deduction during the same year.
Sandeep Joshi
(ACCOUNTANT)
(66 Points)
Replied 24 September 2013
S.Rajesh kumar
(Working with practicing CA)
(28 Points)
Replied 24 September 2013
CA Pramod Jain
(manager finance)
(1577 Points)
Replied 25 September 2013
Read sec 194A as commented above before writing 10K n 5K. Question was whether tds is applicable on interest payment to LIC and it is not applicable.
somashekar
(Practitioner)
(26 Points)
Replied 21 March 2018
One of my client is into construction industry, they availed loan on stock from LIC HFL and they have deducted TDS on interest payment.
Is TDS attracting or not?
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India