194A of Income Tax Act,1961

Jay Kishan Sharma (Head Article) (249 Points)

27 November 2010  


suppose a company having major revenue earnings from Interest income,in between it purchases dress materials at higher price and sells it at a lower price to compensate its income..let talk about interest, during the year it had given loan mainly to individuals and HUF and rest to corporate bodies.during the course of its audit, i have found individuals paying interest of Rs 30,000,40,000 to 1,60,000, 2,00,000 but haven't deducted TDS u/s 194A,

1. i want to know whether those individual are eligible to not deduct TDS while paying interest to the company.or its the company who is abiding the law.?


Please give me a solid solution.


2. some individuals account having same opening and closing account, interest not charged in the amount.IS IT CORRECT TO DO..?