Tds for interest paid
This query is : Resolved
Tara Khandelwal
(Querist)
20 May 2014
An individual A has paid interest for an amount of Rs.8,04,000/- on unsecured loan to an individual B. My Query is whether the individual A is required to deduct TDS @ 10% under section 194A. The provisions of tax audit is applicable or not?
Sandeep Dharar
(Expert)
20 May 2014
Individual & HUF can't deduct TDS u/s 194A.
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Nikhil Kaushik
(Expert)
20 May 2014
on account of first proviso to 194A an individual shall be required to deducted TDS if he/she is covered under tax audit under section 44AB.
Tara Khandelwal
(Querist)
20 May 2014
@ Nikhik Kaushik
Sir,
The provisions of section 44AB should be with regard to the current financial year or preceding financial year?
Also if the individual is not covered under 44AB he need not deduct TDS even if the interest paid is more than Rs.5000/- Am I correct sir?
Sir,
The provisions of section 44AB should be with regard to the current financial year or preceding financial year?
Also if the individual is not covered under 44AB he need not deduct TDS even if the interest paid is more than Rs.5000/- Am I correct sir?
Nikhil Kaushik
(Expert)
20 May 2014
Dear Tara,
provisions of 44AB should be looked in from the perspective of preceding financial year.
if the individual or HUF is not covered under 44AB, TDS is not be deducted irrespective of the amount of interest paid.
provisions of 44AB should be looked in from the perspective of preceding financial year.
if the individual or HUF is not covered under 44AB, TDS is not be deducted irrespective of the amount of interest paid.
Message likes :
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Tara Khandelwal
(Querist)
20 May 2014
Thank you sir for your clarification
Nikhil Kaushik
(Expert)
20 May 2014
Dear Tara,
provisions of 44AB should be looked in from the perspective of preceding financial year.
if the individual or HUF is not covered under 44AB, TDS is not be deducted irrespective of the amount of interest paid.
provisions of 44AB should be looked in from the perspective of preceding financial year.
if the individual or HUF is not covered under 44AB, TDS is not be deducted irrespective of the amount of interest paid.
Nikhil Kaushik
(Expert)
20 May 2014
you are welcome Tara...good luck...
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