Tds - interest on loans
This query is : Resolved
14 March 2012
Respected Sir,
If A an individual borrows a loan of Rs 25 lakhs from another individual B, and pays a monthly interest of Rs 50,000 to B, then should A deduct TDS ?
Whether TDS would be applicable on such interest payments?
If A an individual borrows a loan of Rs 25 lakhs from another individual B, and pays a monthly interest of Rs 50,000 to B, then should A deduct TDS ?
Whether TDS would be applicable on such interest payments?
14 March 2012
No if you accounts are liable to be audited then you have to deduct TDS and accordingly pay the same to the government.
Mihir Doshi
(Expert)
14 March 2012
Deepakji,
My opinion differs here, Its not the requirement or precondition that person should deduct TDS if Tax audit is applicable to it.
TDS provisions are different from Tax audit provision. In absence of Tax audit, TDS provision will be applicable or vice a versa.
Here, as the interest is exceeding limit INR 5,000/- then section will be applicable.
Thanks
Mihir Doshi
My opinion differs here, Its not the requirement or precondition that person should deduct TDS if Tax audit is applicable to it.
TDS provisions are different from Tax audit provision. In absence of Tax audit, TDS provision will be applicable or vice a versa.
Here, as the interest is exceeding limit INR 5,000/- then section will be applicable.
Thanks
Mihir Doshi
15 March 2012
I am agreeing with Mr. Deepak prathap.
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