TDS should be deducted by the party who pays it & file TDS accordingly!! Co is not in fault

To be at safer side,Co should inform their clients to do so!!!

TDS should be deducted  interest paid on other than securities, i.e interest, etc.., 10% to all individuals

When a person 2(31) pays interest to others or when interest paid amount is greater than prescribed limit then person 2(31) is liable to deduct tds. If a person not deduct tds this reason can be. if payee given form no 15g/15h then payer is not liable to deduct tds.or if in previous year payee is not covered u/s 44af then payee is also not liable to deduct tds.

It may be possible that the interest received from those individuals are not liable to audit u/s 44AB & hence not liable to deduct TDS.

If they are liable to deduct TDS, the co. is safe as the co. has not violated any provisions of the Act.

Talking about Interest not charged on some loans, you have to  verify the contract between the co. & those persons and raise the question before the mgt. why interest is not charged on those loans.

Also, if they are directors relative then you must check whether proper records have been made as per Sec. 301 of the Companies Act & refer this point in CARO also.

sec 194A does not apply to individuals unless they fall under sec44AB.