I kept some amount in Bank fixed deposit.My friend asked me that amount as loan for construction of his house.He assures that he will pay the same amount of interest as the bank will give.At present,as a senior citizen I'm getting 50,000 rs deduction from the gross total income under section 80TTB.Can I get the same benefit if I lend the same amount to my friend instead of FD?
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Interest income taxation benefits
Replies (6)
Quick Summary
No in my opinion you won't get the benefits of 80TTB as it only allowed when the Interest is received upon bank Deposits with
1. Banks
2. Co operative society
3. Post office
&
under section 80TTB it is clearly mentioned
Where the income is derived from any deposit held by, or on behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed under this section in respect of such income in computing the total income of any partner of the firm or any member of the association or any individual of the body.
1. Banks
2. Co operative society
3. Post office
&
under section 80TTB it is clearly mentioned
Where the income is derived from any deposit held by, or on behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed under this section in respect of such income in computing the total income of any partner of the firm or any member of the association or any individual of the body.
Should he deduct TDS while paying interest to me?
Should he deduct TDS while paying interest to me?
Yes
Section 194A of the Income Tax Act requires TDS on interest payments to resident individuals, excluding interest on securities. If interest paid or credited exceeds Rs. 40,000 (Rs. 5,000 for certain cases) in a financial year
Section 194A of the Income Tax Act requires TDS on interest payments to resident individuals, excluding interest on securities. If interest paid or credited exceeds Rs. 40,000 (Rs. 5,000 for certain cases) in a financial year
Agree with Mr khush trivedi.
Thank you sir for the feedback 👍🏻
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