Interest is a part of salary or not??

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Naveen Ahlawat (Querist)
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09 April 2010 R/sir,

I want to know that If we are assumeing Mr. A is an employee in our company.His salary is over 50 lakhs. as well as we are paying interest to Mr. A agst his salary amount treated as an unsecured loan.

My question is that this interest is a part of income from salary or Other than salary or in which section we are deduct the tds on interest (192B or 194A) or both.

PLEASE REPLY ME IN SECTION AS WELL.

Regards,
Naveen

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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09 April 2010 Intrest on unsecured loan will not be part of salary. TDS on interst will be deduct u/1 194 A.
On salary TDS will be deducte u/s 192B.
i.e We have to assumed that Salary has been paid once and recd back as unsecured loan.
Other expert's view are solicited.

taxindiaconnect

taxindiaconnect (Expert)
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09 April 2010 His income from Interest will be assessed as incoome from other sources, however employer company, knowing his sources and amount of income from interest, the the request from him may consider his interet income also while computing his totol tax liability and the TDS may be deducted under section 192.

Hope this clarifies your query. kinldy let me know if you need further calrification.

Rahul Gupta

Rahul Gupta (Expert)
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09 April 2010 Agreed. Rightly said by Experts.
Treat salary and loan seperately as if we treat in case it is given and taken from different persons.

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