Interest on capital

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Querist : Anonymous

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Querist : Anonymous (Querist)
29 March 2012 I am working in a partnersip firm.firm decided to give interest @ 12% on capital. 5(five) partners get seperately Rs. 145000/-
Do I need to get TDS if yes how much ?


thanks in advance

29 March 2012 TDS provisions are not applicable, in case of interest on capital paid by the firm to the partners. Refer 194A(3)(iv)

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Querist : Anonymous

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29 March 2012 Thanks you very much

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Querist : Anonymous

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Querist : Anonymous (Querist)
31 March 2012 dear sir,

do i credit interest before book profit or after book profit ?

31 March 2012 You can allow the interest before computation of book profit. No need to add back when computing book profit for ascertaining permissible salary to partners.


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