Dear Sir,
Medium size enterprises "x" have borrowed some amount from Mr.Y and need to pay interest of Rs.66,000 and "Y" is not a Tax Assesse but having PAN, Do "X" need to pay TDS for "Y" interest or can "X" take Form 15G from "Y" and pay the total interest to "Y"?
Yes, TDS have to be deducted u/s 194A as the interest amount is above Rs. 10,000 . TDS rate is 10% on Rs. 66000/- .Further if Y gives form 15G then no need to deduct TDS.
AJAY SINGH AND CO LLP
Thane
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Malhotra Rajesh & Associates
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