TDS Applicability

[Ethirajan Parthasarathy]

One of my client is trading in equity with Margin trading facility extended by ICICI SECURITIES LIMITED Is he liable for TDS on interest charged by ICICI SECURITIES LIMITED which is not a Banking company

AI Summary

TDS Applicable on Interest Charged by ICICI Securities for Margin Trading per Section 194A of Income Tax Act A client engaged in equity trading with margin trading facilities from ICICI Securities Limited inquired about the applicability of Tax Deducted at Source (TDS) on interest charged by ICICI Securities, which is not a banking company. Respondents clarified that TDS is applicable under Section 194A of the Income Tax Act. If the client is an individual or Hindu Undivided Family (HUF) with sales exceeding specified thresholds, TDS must be deducted if the interest exceeds Rs. 5,000 annually. For entities other than individuals or HUFs, TDS must be deducted regardless of turnover in the previous financial year.