TDS ON UNSECURED LOAN INTEREST FROM RELATIVES

This query is : Resolved

Yasir (Querist)
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01 June 2023 LOAN AMOUNT TAKEN FROM RELATIVES INTEREST ACCRUED THEREON RS 9000 FOR THE YEAR ENDED 31-03-2023 HOW MUCH TDS WILL BE DEDUCTED

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 June 2023 As per section 194A read with Part II of First Schedule to Finance Act, tax is to be
deducted @ 10% from the amount of interest. However, if the payee does not furnish his
Permanent Account Number (PAN), then the payer has to deduct tax at the higher of
following:
 At the rate specified in the relevant provision of the Income-tax Act.
 At the rate or rates in force, i.e., the rate prescribed in the Finance Act.
 At the rate of 20%

So, if PAN is provided deduct TDS at 10% rate. i.e. Rs. 900/-.

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