TDS U/s 194A on vehical loan

[HIMANSHU JARIWALA]

Dear All

Is any TDS required on intrest payment on vehical loan taken from financial institution like 'Sundaram Finance'. I heard that earlier it was exepted but ti is withrawn in current year.

AI Summary

Clarifying TDS under Section 194A: No TDS for non-audited individuals; 10% if interest payments exceed Rs. 5,000 annually. A discussion on the applicability of Tax Deducted at Source (TDS) under Section 194A for interest payments on vehicle loans from financial institutions like Sundaram Finance. One participant clarifies that individuals not subject to tax audits are exempt from TDS, and no TDS is required if payments are made to banking companies or certain financial institutions. Another participant states that TDS at 10% is applicable if payments exceed Rs. 5,000 annually, unless a Nil or lower deduction certificate is provided by the company from their Assessing Officer.