Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2013 If an individual taken a loan and paying interest of Rs. 75000, is he required to deduct TDS?
And he also have a proprietorship business which is audited u\s 44AB.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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13 January 2013 Yes sir, he is required to deduct TDS.
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Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2013 But Paras sir loan is taken for personal purpoae not for business use..

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 January 2013 In such a case you are not claiming the expenditure and question of disallowance of
interest gets resolved here.
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But, in my view, the liability of TDS still remains as the provision of Section 194A(1) makes responsible to the payer of income towards the amount paid or credited to the payee. It is irrespective of interest claimed or not claimed as an expenditure.
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