TaxTMI 
TaxTMI 
Dear Sir,
We are Loan taken from TATA Finance how do deduct TDS interest on repayment.
Thanking You
TDS on Loan Interest
09 Jun 2011 
2 Replies 
7040 Views Asked by
Guest 
TDS on loan interest applies only to the interest component; borrower may pay tax and seek reimbursement from lender.
TDS applies only to the interest component of loan repayments; principal repayments are not subject to TDS. In practice borrowers sometimes pay tax on interest themselves and claim reimbursement from the finance company by producing challans, so confirm the lender's procedure and retain proof of tax payment when seeking reimbursement. (AI Summary)
TDS applies only to the interest component of loan repayments; principal repayments are not subject to TDS. In practice borrowers sometimes pay tax on interest themselves and claim reimbursement from the finance company by producing challans, so confirm the lender's procedure and retain proof of tax payment when seeking reimbursement. (AI Summary)