TDS
This query is : Resolved
15 July 2010
I M a CA, Having Professional Income and liable for tax audit.
last year i suffered short term capital loss from shares trading.
1. Can these be set off?
2. I paid interest to broker.
SHOULD I DEDUCT TAX AT SOURCE?
( plz keep in mind that shares loss is taxable under capital gain head)
and any reference plz
last year i suffered short term capital loss from shares trading.
1. Can these be set off?
2. I paid interest to broker.
SHOULD I DEDUCT TAX AT SOURCE?
( plz keep in mind that shares loss is taxable under capital gain head)
and any reference plz
15 July 2010
1. Short Term Capital loss cannot be set off against business income and can be set off against other STC Gains or taxable LTC gains.
2. Since interest is paid u are liable for tax audit hence TDS should be deducted on interest.
2. Since interest is paid u are liable for tax audit hence TDS should be deducted on interest.
15 July 2010
but i m not paying interest on income which is chargeable under business head.
15 July 2010
Section 194A reads as
Any person65, not being an individual or a Hindu undivided family, who is responsible for paying65 to a resident any income by way of interest other than income 66[by way of interest on securities], shall, at the time of credit of such income to the account of the payee67 or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force
However even if u do not deduct TDS on the same there will not be any disallowance u/s 40(a)(ia) for reason mentioned by you.
Any person65, not being an individual or a Hindu undivided family, who is responsible for paying65 to a resident any income by way of interest other than income 66[by way of interest on securities], shall, at the time of credit of such income to the account of the payee67 or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force
However even if u do not deduct TDS on the same there will not be any disallowance u/s 40(a)(ia) for reason mentioned by you.
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15 July 2010
BUT IF IT IS YOUR FIRST YEAR OF TAX AUDIT, YOU ARE NOT LIABLE TO DEDUCT THE TAX AT SOURCE IN CURRENT YEAR. IN NEXT YEAR YOU WOULD HAVE TO DEDUCT TDS WHETHER YOU ARE LIABLE TO GET YOUR ACCOUNTS AUDITED OR NOT IN THE NEXT YEAR
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