Anila Sabu 30 June 2022
TDS needs to be deducted under Section 194A in the following circumstances:
If the amount of such interest paid, credited, or anticipated to be paid, credited in a financial year exceeds, the payer/deductor shall deduct TDS.
where the payer is: 40,000
No TDS would be taken from elderly people' interest earnings up to INR 50,000 starting in FY 2018-19. The following sources should yield the required amount of interest:
However, the Council has asked that tax deduction at source (TDS) be waived on interest payments made to NBFCs.
Interest payments made to NBFCs must be taxed at a rate of 10% under Section 194A of the Income Tax Act. However, the clause grants exemptions to people who pay interest to organisations like banks, life insurance companies, and UTI.
They have therefore recommended that the Small Industries Development Bank of India (SIDBI) offer NBFCs a refinancing facility so that they can then lend to MSMEs and other suitable industries.
Shadab Khan 30 June 2022