TDS
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 April 2011
proprietorship concern including it's individual under interest incurred more than 5000/- TDS will be deducted or not for the A.Y.2011-12.
29 April 2011
kya aap sawaal hindi mai bata sakte hai ?
27 July 2025
For a **proprietorship concern**, the key point is:
* **Interest paid by a proprietorship (including individual proprietors) on borrowed capital exceeding Rs. 5,000** during the financial year is subject to TDS under **Section 194A** of the Income Tax Act.
### Details:
* **Section 194A** applies to interest other than interest on securities.
* If the proprietorship pays interest exceeding Rs. 5,000 in a financial year to a resident (like on a loan taken from a bank, financial institution, or any person), TDS must be deducted.
* The **applicable TDS rate** is generally **10%** (subject to conditions or lower rates under DTAA).
* This applies for **Assessment Year 2011-12** as well.
### Summary:
| Payment Type | Threshold | TDS Deductible? | Section |
| ---------------------------------------------- | --------- | --------------- | ------- |
| Interest by Proprietorship on borrowed capital | Rs. 5,000 | Yes | 194A |
---
**So, yes**, for AY 2011-12, if the proprietorship concern pays interest over Rs. 5,000, TDS is applicable.
---
If you want, I can share the exact legal text or any recent updates relevant to this. Let me know!
* **Interest paid by a proprietorship (including individual proprietors) on borrowed capital exceeding Rs. 5,000** during the financial year is subject to TDS under **Section 194A** of the Income Tax Act.
### Details:
* **Section 194A** applies to interest other than interest on securities.
* If the proprietorship pays interest exceeding Rs. 5,000 in a financial year to a resident (like on a loan taken from a bank, financial institution, or any person), TDS must be deducted.
* The **applicable TDS rate** is generally **10%** (subject to conditions or lower rates under DTAA).
* This applies for **Assessment Year 2011-12** as well.
### Summary:
| Payment Type | Threshold | TDS Deductible? | Section |
| ---------------------------------------------- | --------- | --------------- | ------- |
| Interest by Proprietorship on borrowed capital | Rs. 5,000 | Yes | 194A |
---
**So, yes**, for AY 2011-12, if the proprietorship concern pays interest over Rs. 5,000, TDS is applicable.
---
If you want, I can share the exact legal text or any recent updates relevant to this. Let me know!
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