Tds on unsecured loan
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 October 2016
Dear Sir
If we take unsecured loan in our personal account of about 20 lac without interest then in propritorship firm interest provision is mandatary or not. and if we paying him interest from his personal a/c then tds deduction is compulsory or not.
kindly suggest me.
If we take unsecured loan in our personal account of about 20 lac without interest then in propritorship firm interest provision is mandatary or not. and if we paying him interest from his personal a/c then tds deduction is compulsory or not.
kindly suggest me.
Sandeep Dharar
(Expert)
25 October 2016
As per me do not show it as a loan, coz, how a proprietor can take loan from his own proprietorship concern?? Its better to show it as drawings. But it is such a huge amount, so questions may arise from Department regarding such huge transaction. Look I'll suggest you to show it as drawings in multiple dates, instead of showing loan to proprietor.
25 October 2016
Sole proprietary business and owner are not separate under Income Tax Act. Question of loan / TDS does not arise.
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