I have a car loan account with reliagare financial institution for Rs.300000/-. I am paying monthly EMI of 35000/- for 10 months. (30000 principal + 5000 interest).
I want to know the entries to be passed to close he account and also suggest any tds to be deducted, because i have to pay fixed EMI and can't reduce the TDS amount from EMI Portion. Which means i need to pay from my pocket ?
I found this on internet and it is really very nice.
An excellent blog to read.
Great work!
The process of the production is launched for all persons. The theme of the man to best dissertation writing company is ensured for humans. This turnaround is appreciated for the people. The start is filled for the moves for all citizens.
In your case TDS you have to deduct separately from the party and needs to recover from him.
1. EMI Payment entry for each month
Car Loan 30,000 (Party a/c)
Interest 5,000
to Bank 35,000
2. TDS Deduction entry
Party a/c 500 (5,000*10%)
to TDS U/S 194A 500
3. TDS Payment entry
TDS U/S 194A 500
to Bank 500
4. Receipt of TDS amount from the party
Bank a/c 500
to Party a/c 500
The above entries shall be passed for each month until completion all EMI's and account will be closed upon passing of all the entries.