https://www.taxtmi.com/article/detailed?id=10387 Payments to a security provider or guarantor function as a cost of borrowing and may fall within the broad statutory meaning of interest that includes service fees or other charges in respect of moneys borrowed. While professional or loan-processing fees should be treated under their appropriate TDS heads, security and guarantee commissions payable in respect of capital borrowed can be treated as interest for TDS purposes. To avoid disallowance and litigation risk, a conservative approach is to deduct tax at source on such charges under the provision applicable to interest. en-us Mon, 09 May 2022 17:16:28 +0530 Mon, 09 May 2022 17:16:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=10387 Payments to a security provider or guarantor function as a cost of borrowing and may fall within the broad statutory meaning of interest that includes service fees or other charges in respect of moneys borrowed. While professional or loan-processing fees should be treated under their appropriate TDS heads, security and guarantee commissions payable in respect of capital borrowed can be treated as interest for TDS purposes. To avoid disallowance and litigation risk, a conservative approach is to deduct tax at source on such charges under the provision applicable to interest. Articles Income Tax Mon, 09 May 2022 17:16:28 +0530 https://www.taxtmi.com/article/detailed?id=10387