In India, Whether TDS is applicable on loan amount?

Yes, TDS (Tax Deducted at Source) may be applicable on loan amounts in India, depending on the type of loan and the terms and conditions of the loan agreement.

If the loan is taken from a bank or other financial institution, then TDS may be applicable on the interest paid on the loan, as per the Income Tax Act, 1961. The bank or financial institution is required to deduct TDS at the rate of 10% on the interest paid if the interest amount exceeds Rs. 5,000 in a financial year.

However, if the loan is taken from an individual or a non-banking financial institution, TDS may not be applicable on the loan amount. In such cases, the borrower is responsible for paying the income tax on the interest earned on the loan.

It is important to note that the above information is general in nature and may vary based on the specific details of the loan agreement and the applicable tax laws. It is recommended that borrowers consult a tax professional or a financial advisor for specific guidance on their loan and tax obligations.