TDS On Interest On Loan

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This query is : Resolved

Aayushi (Querist)

13 September 2009 Hi

Could u please let me know if a company is paying interset on loan to its director then at what rate the TDS will be deducted??

I mean will it be a part of Salary and tds is deducted at slab rate of the relevant Assessment Year

Or

Will the TDS is deducted at Interest Other Than On Securities..

Please Reply

Aayushee

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)

13 September 2009 It shall be deducted at the rates prescribed under 'Interest other then Interest on securities.' It is on loan and can not be a part of salary. Salary and Loan, both are totally different and can not be clubbed together.

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Aayushi

Aayushi (Querist)

14 September 2009 Is that some where it is written in the act it is to be deducted at Interest On Securities

Aayushi

Aayushi (Querist)

14 September 2009 Anyways thanx For your reply sir...Thanx

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)

14 September 2009 It is not need to be written specifically. It is clearly looking that its not a part of salary. And intt on loan is treated as intt other then the securities. Hence it has to be deducted at that rate only.

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