TDS On Interest On Loan

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Aayushi (Querist)
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13 September 2009 Hi

Could u please let me know if a company is paying interset on loan to its director then at what rate the TDS will be deducted??

I mean will it be a part of Salary and tds is deducted at slab rate of the relevant Assessment Year

Or

Will the TDS is deducted at Interest Other Than On Securities..

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Aayushee

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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13 September 2009 It shall be deducted at the rates prescribed under 'Interest other then Interest on securities.' It is on loan and can not be a part of salary. Salary and Loan, both are totally different and can not be clubbed together.

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Aayushi

Aayushi (Querist)
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14 September 2009 Is that some where it is written in the act it is to be deducted at Interest On Securities

Aayushi

Aayushi (Querist)
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14 September 2009 Anyways thanx For your reply sir...Thanx

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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14 September 2009 It is not need to be written specifically. It is clearly looking that its not a part of salary. And intt on loan is treated as intt other then the securities. Hence it has to be deducted at that rate only.