TaxTMI 
TaxTMI 
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.
TDS U/s 194A on vehical loan
05 Jan 2011 
2 Replies 
34265 Views Asked by
TDS on vehicle loan interest applies unless payer obtains nil or lower certificate or lender is an exempt institution.
A tax deductor must deduct TDS on finance charges or other charges paid for a vehicle loan when aggregate payments exceed the statutory threshold; production of a nil deduction certificate obviates deduction and a lower deduction certificate permits deduction at the lower rate. Payments to banking companies, public financial institutions, or cooperative societies engaged in banking are generally not subject to TDS, and payers should verify whether a particular lender qualifies for that exemption. (AI Summary)
A tax deductor must deduct TDS on finance charges or other charges paid for a vehicle loan when aggregate payments exceed the statutory threshold; production of a nil deduction certificate obviates deduction and a lower deduction certificate permits deduction at the lower rate. Payments to banking companies, public financial institutions, or cooperative societies engaged in banking are generally not subject to TDS, and payers should verify whether a particular lender qualifies for that exemption. (AI Summary)