Tds
This query is : Resolved
22 March 2011
Respected Sirs
i have a doubt on TDS Provision.
we represent a Finance business running under the style of a partnership firm and we earn our income by way of interest earned on money lent . This year we will be subject to Audit under sec 44AB.
Now my doubt is should we deduct any tds on the interest received .
what will the section under which we fall.what is crieteria for deduction of TDS. pls clarify
with regards
sitaramarao
i have a doubt on TDS Provision.
we represent a Finance business running under the style of a partnership firm and we earn our income by way of interest earned on money lent . This year we will be subject to Audit under sec 44AB.
Now my doubt is should we deduct any tds on the interest received .
what will the section under which we fall.what is crieteria for deduction of TDS. pls clarify
with regards
sitaramarao
22 March 2011
Dear Rao Ji,
1st of all TDS is deducted on payment and sice you are receiving interest income TDS will be deducted from the payment made to you on account of interest u/s 194A @ 10 on crossing the threshold limit of Rs 5000/- p.a.. You are liable for TDS deduction irrespective of applicability of Tax Audit.
Regards
1st of all TDS is deducted on payment and sice you are receiving interest income TDS will be deducted from the payment made to you on account of interest u/s 194A @ 10 on crossing the threshold limit of Rs 5000/- p.a.. You are liable for TDS deduction irrespective of applicability of Tax Audit.
Regards
22 March 2011
sir
should i deduct tax on the interest received.
This may sound odd but i am concerned.
My doubt is there are some persons whose accounts are audited under 44AB and they are entitled to deduct tax on payments (interest) made to us . There are persons who are individuals who pay interest and are not liable to Audit u/s 44 AB.
so the position they are entitled to deduct tds as they pay the amounts and i am only a receipient . is my position correct.
with regards
sitaramarao
should i deduct tax on the interest received.
This may sound odd but i am concerned.
My doubt is there are some persons whose accounts are audited under 44AB and they are entitled to deduct tax on payments (interest) made to us . There are persons who are individuals who pay interest and are not liable to Audit u/s 44 AB.
so the position they are entitled to deduct tds as they pay the amounts and i am only a receipient . is my position correct.
with regards
sitaramarao
22 March 2011
In case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of individual and HUF, only if the turnover or professional receipt exceeds sum of Rs. 40 lakh or Rs. 10 lakh respectively (the limits will be Rs.60 Lakh or Rs. 15 Lakh respectively w.e.f. 01.04.2010) in previous year, he is required to deduct tax at source.
Say Tax Audit Applicable for Previous Year 10-11. He is required to deduct tax at source from PY 11-12.
Hope its clear.
Say Tax Audit Applicable for Previous Year 10-11. He is required to deduct tax at source from PY 11-12.
Hope its clear.
23 March 2011
Thank you sir for the support.
with regards
sitaramarao
with regards
sitaramarao
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