A is Individual Professional having turnover above 30 Lakhs for which he maintains seperate books of accounts.
A has purchased House Property with finance from Bajaj Finance and letout to oursider.The income is shown as Income from Housing Property. Deduction of Interest paid is claiming u/s 24b and principle u/s 80C. Pl clarify whether TDS is to be deducted from Interest component of the housing loan. The same is not forming part of business/professional activity
Similarly he has taken personal loan from Bajaj Finance @ 14%, not forming part of business/professional activity. Same amount of loan is lent to outsider @ 18%. The difference of 4% is shown in return of income as Income from other sources. Wheter TDS is applicable on Interest paid to Bajaj Finance.
Also pl clarify, Interest payable on loan taken for Business Activity from finance institutes like, HDFC, LIC Housing, DHFL, TATA Finance etc. TDS is to be deducted or not, since, acttivity of finance company is regulated by RBI rules.
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