Whether tds is deducted from interest charged bybuilder

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2015

Sometimes the Builder is charging the Interest on delayed payment of Interest of the Instalments of Property purchased.

Clarify : We are deducting TDS @ 1% on Immovable Property u/s 194LA from the payment of above instalment. But when the builder chage the Interest on delay payment of the Instalment, SHOULD WE DEDUCT THE TDS from the claim of Interst ,if so, at What rate the TDS will be deducted together with the Instalment Amount payable to BUILDER.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 April 2015 If you are an individual not liable for tax audit u/s 44AB no need to deduct TDS on such interest payments.

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2015 In fact, I am on behalf of a COLLEGE, the query has been asked.

A college which is coming under the Trust and under the Society Act,purchased FLATs and then whether they will be u/s 44 AB if whether College will deduct income tax on Interest paid.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 April 2015 Yes the college under the society has to deduct TDS on interest paid.

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