Interest on drawings

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Student
844 Points Posted on 22 February 2021
Interest on drawings is claimed as business expense in the hands of partners in their itr?
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On 22 February 2021 at 01:25 Report
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This discussion clarifies that interest on drawings cannot be claimed as a business expense by partners. The reasoning is that drawings represent personal funds withdrawn by the partner, and one cannot pay interest to themselves. Consequently, if no interest is paid, there is no TDS liability.

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Chartered Accountant
24588 Points Posted on 22 February 2021
No it should not be claimed
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On 22 February 2021 at 06:38
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Chartered Accountant
86505 Points Posted on 22 February 2021
No you can't.
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On 22 February 2021 at 08:26
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17269 Points Posted on 22 February 2021
Not allowed
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On 22 February 2021 at 12:27
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Student
844 Points Posted on 22 February 2021
Is any tds on interest on drawings?
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On 22 February 2021 at 12:35
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Chartered Accountant
86505 Points Posted on 22 February 2021
First of all , drawing is taking out self money and you can't pay interest to yourself.

Secondly, if you don't pay interest then why TDS liability will arise.
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On 22 February 2021 at 21:21

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