Doubt Section 24

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...........