Doubt Section 24

827 views 6 replies

As per section 24(b) if interest paid out of india Tds should be deducted on this payment otherwise deduction is not allowed.

Q- If an individual  who is a salary employee take loan from his friend who is NRI and paid interest on loan. Is he liable to deduct  tds whether he is comes under catagory of section 44AB or not.

Q2- He is liable to take TAN no only for this transaction if there is no other transaction on which Tds is applicable.

Thanx in advance to all my friends.

Replies (6)

Dear Babit,

Yes beacuse if you look at Sec 195, the exemption (44AB) from deduction of TDS like in other cases is not there....

So TDS shall be deducted & TAN if not having already then has to be applied for........(even if this is the sole transaction)

Dear Babit,


A person i.e. an individual cannot borrow money on interest from a person o/s india thru the automatic route i.e. prior approval of RBI is needed...

However, interest free freindly loans cannot be borrowed if under the presrcibed limit

 

So if there is payment of interest kindly ensure prior RBI approval has been taken on loan

Dear Nicky Sir all other condition is assumed to be satisfied

i have only query whether individual assesse is liable to deduct and pay tax on such payment.

Pl clearify.

Thanx for all your valuable comments dear friends

Babit, yes he is liable to deduct TDS.

Otherwise he cant claim deduction cos of section 25 which overrides section 24.

Amir has pretty well explained, i will just reiterate:

a) Sec 25 specifically disallows claiming interest if TDS has not been deducted and paid under Chapter XVII B i.e. section 195

b) Yes he is laible to take TAN

all of above are right.......... TDS is required to be deducted...........


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details