Tds

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megha agarwal (Querist)
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14 June 2016 if a proprietor taken personal house loan(not used in business) from nbfc falling u/s 44AB, is he liable to deduct tds?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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14 June 2016 Since Individual personal capacity and not related to business , No need to deduct TDS

megha agarwal

megha agarwal (Querist)
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14 June 2016 but Act doesn't specify that loan should be used only for business purpose.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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14 June 2016 you can consider the other way, if you have not deducted the TDS on that interest to NBFC, what will be the consequences. the relevant interest expenses will be disallowed, since the house is not used for the business and there is no question of interest expenses claim in business. since your query itself personal house not used for the business hence it will be considered as normal individual housing loan where there is no requirement of TDS deduction will arise

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