Interest unsecured loans

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Assistant
362 Points Posted on 11 April 2021
Dear Sir

please suggest we have to pay interest on unsecured loan to individual.Individual has no other income we don't have Tan number.Can we pay 24000 interest to individual person Tds is mandatory or not.how much amount we have pay without deduction of TDS
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On 11 April 2021 at 16:05 Report
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Quick Summary
This discussion clarifies the rules around paying interest on unsecured loans to individuals, particularly when the individual has no other income and no TAN number is available. It confirms that TDS (Tax Deducted at Source) is mandatory on interest payments exceeding £5,000, with a rate of 7.5% applicable under Section 194A, especially given the business's turnover.

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2742 Points Posted on 11 April 2021
What's your turnover in last year
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On 11 April 2021 at 16:35
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Assistant
362 Points Posted on 11 April 2021
Sir
previous year 2019-20 turn over 1 crore 18 Lacs and this year 2020-21 around 2.50 crore
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On 11 April 2021 at 17:16
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Chartered Accountant
24588 Points Posted on 11 April 2021
Yes TDS should be deducted u/s 194A @ 7.5%
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On 11 April 2021 at 17:24
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Assistant
362 Points Posted on 11 April 2021
Sir Can we pay interest without deduction of TDS
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On 11 April 2021 at 17:25
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2742 Points Posted on 11 April 2021
No, you have to deduct tds , if interest exceeds Rs. 5000
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On 11 April 2021 at 19:32
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Chartered Accountant
24588 Points Posted on 11 April 2021
TDS should be Deducted
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On 11 April 2021 at 22:09

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