Tds on payment of interest

[Anup Kumar Grover]

Whether TDS required to be deducted on payment of interest to financial companies like Reliance Capital, Chhollamandlum DBS Finance, Indiabull Financial Services Ltd

[Guest]

If the amount paid is 'interest' on loans obtained from the financial companies, the same would attract TDS u/s 194A of the Income tax Act.

AI Summary

TDS on interest: payers must deduct tax at source when making interest payments to finance companies under the applicable provision. TDS liability arises on interest paid to financial companies where the payment constitutes interest on loans; such payments fall within the scope of withholding under 194A of the Income Tax Act and require deduction at source by the payer.