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Query

TDS / TCS 953 views 1 replies

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  1.Mr.A is a partner in M/sXYZ partnership firm.He has given  a loan to his firm, which is authorised by a deed. Now my question is, whether the firm is liable to deduct TDS while paying interest on loan to its partner?

  2.Is a firm liable to deduct TDS, on interest paid on partners capital?

  3.A partner  has given his own building on rent to his partnership firm to carry on business. When the partner receives monthly rent from such firm, then under what head will such income be taxed in the hands of the partner?

Replies (1)
Answers to all of the above query is as follows: Refence Chapter XVII of the income tax act (i) & (ii) Section 194 A, it specifically exempts dedn of TDS on paymnet or credit of interest by firm to a partner So, the firm is not liable to deduct TDS. (iii) It depends on the circumstances of the case which u have not specified. It can be under income from House Property or Income from Business or Profession or income from Other soureces if not classified on the above heads...


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