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Director or partner can deduct tds on interest?

600 views 6 replies

Lalit Sangani

M.Com. Asst. Manager Account

736 Points Posted on 29 December 2012

Dear All,

Whether a director of company or partners of firm has paid Interest on loan, then my query is below regarding deductor as a individual not deductor as a compnay :

1. At the time of payment of Interest, can he deduct TDS on Interest.

2. if he can deduct TDS, than TAN no. should be necessory for individual deductor, which will be require for TDS return.

Replies (6)

CA Manish

Job

5264 Points Posted on 29 December 2012

Individuals are liable to deduct tds u/s 194A only when they were liable for tax audit in the previous financial year.

Bharat

CA FINAL STUDENT

80 Points Posted on 29 December 2012

Yes, individual is liable to deduct TDS u/s 194a if he were liable for tax audit under the act..

Lalit Sangani

M.Com. Asst. Manager Account

736 Points Posted on 31 December 2012

Dear Manish and Bharat,

Thanks for the reply but my second query is steel pending "if he is liable to deduct TDS, will TAN no. be compulsory for individual deductor, which is require at the time of TDS return submission."

CA Manish

Job

5264 Points Posted on 31 December 2012

Yes, obviously . If one is liable to deduct TDs then he has to apply for TAN No.

Bharat

CA FINAL STUDENT

80 Points Posted on 01 January 2013

if he can deduct TDS, than TAN no. should be necessory for individual deductor, which will be require for TDS return.

Read more at: /forum/director-or-partner-can-deduct-tds-on-interest--233128.asp#.UOJeI6xogf0

Yes, definately TAN is requiared for individual, who want to deduct TDS and for Return......!!!!