TaxTMI 
TaxTMI 
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
TDS Applicability
27 Oct 2022 
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TDS on interest under section 194A: deduction obligation for margin funding; individuals/HUF face turnover thresholds, others must deduct.
TDS on interest paid to a non-banking margin financier is governed by section 194A. Individuals and HUFs must deduct only if their preceding-year business or professional turnover exceeds the prescribed thresholds and the aggregate interest paid in the year exceeds the statutory exemption threshold. Payers other than individuals or HUFs must deduct TDS on such interest irrespective of turnover. The payer must determine status, apply the turnover and exemption conditions when relevant, and effect the deduction. (AI Summary)
TDS on interest paid to a non-banking margin financier is governed by section 194A. Individuals and HUFs must deduct only if their preceding-year business or professional turnover exceeds the prescribed thresholds and the aggregate interest paid in the year exceeds the statutory exemption threshold. Payers other than individuals or HUFs must deduct TDS on such interest irrespective of turnover. The payer must determine status, apply the turnover and exemption conditions when relevant, and effect the deduction. (AI Summary)