Tds deduction on interest

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Rups.... (Querist)

15 February 2016 Hello sir If individual taken mortgage loan for businees , then it is require to deduct tax even if individual is not in audit i.e non audit case Because In scrutiny officer is demanding form 26A for above individual case as i not deducted tds What to do in this case

Suresh Ramaswamy

Suresh Ramaswamy (Expert)

15 February 2016 In case of individuals and HUFs who are not subject to Tax audit, then no liability is cast on the assessee to deduct tax at source. This is the clear provision of law. In case of the business only if it is a proprietorship or HUF owned concern exemption is available from deducting tax at source, provided it is not subject to tax audit. If the conditions are fulfilled you may quote the provisions of Section 194A to tell the officer you are not liable to deduct tax at source on interest paid.

Rups....

Rups.... (Querist)

15 February 2016 thank you sir for your valuable reply

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