Applicability of TDS, Income Tax

[pran shangari]

assests purchased by a concern and financed by nonbanking finance cos the likes of Magma Finance, Tatamotors Finance or L & T Finance.The Insalment is payable monthly for a period of say 36 months.Will there be a need to deduct TDS.If Yes on what sum and under which section.

Posts / Replies

[Rama Krishana]

You need to find the correct nature of these banking institutions. Are they in the nature of banking company or NBFC. The provisions of TDS are applicable to interest paid to NBFC. See clause (iii) of sub section (3) of section 194A of the income tax act, 1961.