https://www.taxtmi.com/forum/issue?id=3930 Characterisation of loan processing fees determines TDS: the statutory definition of interest includes service charges related to borrowed moneys, so if processing fees are treated as interest they fall under the interest withholding regime; payments to banking companies are subject to the exemption framework under section 194A, whereas payments to non bank entities may require deduction (or be considered under alternative sections such as section 194J) depending on the nature of the charge and threshold conditions. en-us Wed, 21 Mar 2012 17:32:33 +0530 Thu, 23 Jan 2025 15:58:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=3930 Characterisation of loan processing fees determines TDS: the statutory definition of interest includes service charges related to borrowed moneys, so if processing fees are treated as interest they fall under the interest withholding regime; payments to banking companies are subject to the exemption framework under section 194A, whereas payments to non bank entities may require deduction (or be considered under alternative sections such as section 194J) depending on the nature of the charge and threshold conditions. Discussion-Forum Income Tax Wed, 21 Mar 2012 17:32:33 +0530 https://www.taxtmi.com/forum/issue?id=3930