Tag Archives: TDS on Interest payment to NBFC

There are three mains reasons why people keep deposits in co-operative banks. One, the bank is closer to their home and the staff there is more friendly compared to the staff in nationalized banks. Two, the bank offers higher rate of interest compared to nationalized banks. Three, the interest on …

  Many Small and Medium Enterprises (SME) borrow money (unsecured loans) from Non-Banking Financial Companies (NBFC). Whether interest paid on such loan attracts TDS provisions is a question frequently asked by the accountants. Here is the answer.   As per Section 194A of the Income Tax Act, 1961 a business …