Tax deduction at source
The lender needs to pay a certain amount of tax on the interest earned. If the borrower pays the EMI after removing the tax component, then it is called Tax Deduction at Source (TDS).
TDS applies only to Flexible AMZ loans.
Example:
| Billed Amount | Principal | Interest | TDS Percentage | TDS Amount | Borrower Pays |
|---|---|---|---|---|---|
| 100 | 800 | 20 | 10 | (20*10)/100=2 | 80+20-2=98 |
User interface reference
Field reference
| Field Name | Description |
|---|---|
| TDS Type | Option Supported: Complete TDS for Specific Schedule It means that: If a borrower pays a schedule partially, the whole tax amount is assumed to be deducted at source and is accounted accordingly. |
| TDS Percentage | Is the percentage of the interest that is to be deducted from the EMI by the borrower. |
Loan payment transaction details
When a payment transaction is created, the transaction amount represents the total amount that is settled against the bill. This amount includes the amount that has been withheld by the borrower.
The actual amount that has been deducted against the borrower is seen under Receipt Amount.
User interface reference
The lender needs to pay a certain amount of tax on the interest earned. If the borrower pays the EMI after removing the tax component, then it is called Tax Deduction at Source (TDS).
TDS applies only to Flexible AMZ loans.
Example:
| Billed Amount | Principal | Interest | TDS Percentage | TDS Amount | Borrower Pays |
|---|---|---|---|---|---|
| 100 | 800 | 20 | 10 | (20*10)/100=2 | 80+20-2=98 |
User interface reference
Field reference
| Field Name | Description |
|---|---|
| TDS Type | Option Supported: Complete TDS for Specific Schedule It means that: If a borrower pays a schedule partially, the whole tax amount is assumed to be deducted at source and is accounted accordingly. |
| TDS Percentage | Is the percentage of the interest that is to be deducted from the EMI by the borrower. |
Loan payment transaction details
When a payment transaction is created, the transaction amount represents the total amount that is settled against the bill. This amount includes the amount that has been withheld by the borrower.
The actual amount that has been deducted against the borrower is seen under Receipt Amount.