Interest paid to partners by the partnership firm on
1)Whether TDS is applicable on Interest paid to partners by the partnership firm on the partners capital
2)Whether TDS is applicable on Interest paid to Partners by the partnership firm on the Unsecured Loan given by the partners
Yes TDS has to be deducted on int paid to Partners on their capital & Unsecured loans
As per section 194A(3)(iv) interest income credited or paid by firm to a partner of the firm is not subject to TDS.
Thus, TDS is not required to be deducted in both cases.
1) T D S is not applicable on interest paid on capital to a firm's partner but interest piad on loan will attract T D S provisions.
I am agree with prakash mehta ,
Interest paid or credited to partners account by the firm is not subject to tds