Tds on interest on unsecured loan

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DWARKA (Querist)
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24 July 2013 I am Proprietor of a Firm. I have paid an interest on unsecured loan for rs. 25000. Should i deduct tds on same or not & why?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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24 July 2013 If your file was under Tax Audit in preceding previous year you will have to deduct TDS u/s 194A @10%.

Example. If Tax Audit applicable in respect of FY 2012-13, TDS required to be deducted from FY 2013-14.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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24 July 2013 you havent mentioned whether you are liabe to tax audit?
and also to whom you are paying int on loan/
is it a private entity?

DWARKA

DWARKA (Querist)
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24 July 2013 The firm was not under tax audit & this is an indidual person to whom the interest paid.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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24 July 2013 Then TDS not required to be deducted.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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24 July 2013 In case if paid to private person then tds needs to be deducted.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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24 July 2013 Please refer : https://www.caclubindia.com/experts/tds-on-repayment-of-loan-1379189.asp

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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24 July 2013 Dear Tushar here the question is for Proprietorship Firm. If Tax Audit not applicable TDS not required to be deducted.

The link given by you is not specifically regarding Proprietorship firm.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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24 July 2013 THERE IS NO LIABILITY OF THE PAYER IN THIS CASE. TDS IS NOT REQUIRED TO BE DEDUCTED.
.
IF HE WISHES TO DEDUCT TDS- HE MAY DO SO.

Astaf Mansuri

Astaf Mansuri (Expert)
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13 August 2015 when assessee have given unsecured loans to say for example to Mr. A, B C & D Now he wants to pay interest Rs. 3000, 3500, 4500, & 6000 respectively. Now whether he is require to deduct TDS only in case of Mr.D only ? i.e. only on the amount of Rs. 6000 or he is require to deduct TDS from all A,B,C,D on Total Amount (Rs.17000). Please assume that payer has audited books of accounts in P.Y.

Astaf Mansuri

Astaf Mansuri (Expert)
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13 August 2015 As i understand it require to deduct from only Mr. D i.e. on Rs. 6000/- only . Am I Right ? Please share your view.