TDS on interest on Partners capital and Unsecured Loan

This query is : Resolved

Ravi Kiran (Querist)
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06 December 2008 Dear Sir,

Interest paid to partners by the partnership firm on

1)Whether TDS is applicable on Interest paid to partners by the partnership firm on the partners capital

2)Whether TDS is applicable on Interest paid to Partners by the partnership firm on the Unsecured Loan given by the partners

Please Clarify

Regards

Ravi Konda

Jaina Shah

Jaina Shah (Expert)
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06 December 2008 Yes TDS has to be deducted on int paid to Partners on their capital & Unsecured loans

CA. Gurdeep Singh Chawla

CA. Gurdeep Singh Chawla (Expert)
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06 December 2008 yes

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Prakash Mehta

Prakash Mehta (Expert)
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06 December 2008 As per section 194A(3)(iv) interest income credited or paid by firm to a partner of the firm is not subject to TDS.

Thus, TDS is not required to be deducted in both cases.

Thanks.

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CA Parvin Ahuja

CA Parvin Ahuja (Expert)
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06 December 2008 1) T D S is not applicable on interest paid on capital to a firm's partner but interest piad on loan will attract T D S provisions.

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