We are a partnership Firm. This Year (F.y.2010-11) we are payable Interest on Capital for Both Partners Rs. 2,00,000 Each. Please suggest us can we deducted TDS agianst Interest on Capital.
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TDS (For Interest on Capital)
Replies (7)
There is no need to deduct TDS on Interest paid or credited by a firm to any of its Partners.
Regards,
Devendra K
ya there is no need to deduct tds interest on capital
AS PER SECTION - 194A , THERE IS AN EXCEPTION FOR FIRM WHERE THERE IS NO NEED TO DEDUCT TDS FOR ANY INTEREST PAYMENT MADE TO PARTNER BY FIRM.......
As per section 194A(3)(iv) interest income credited or paid by firm to a partner of the firm is not subject to TDS.
Thus, TDS is not required to be deducted in the following cases.
1)Interest paid to partners by the partnership firm on the partners capital and
2)Interest paid to Partners by the partnership firm on the Unsecured Loan given by the partners
there is no need to deduct TDS
| Originally posted by : Anish M.S | ||
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As per section 194A(3)(iv) interest income credited or paid by firm to a partner of the firm is not subject to TDS. Thus, TDS is not required to be deducted in the following cases. 1)Interest paid to partners by the partnership firm on the partners capital and 2)Interest paid to Partners by the partnership firm on the Unsecured Loan given by the partners |
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