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TDS on Accrued interest by the Pvt. Company.

Soumyaranjan Samal (fresher) (179 Points)

13 July 2021

Dear Sir,

Please help me to understand below query.

We have taken loan amount of 2 crore from NBFC. And we deduct TDS under section 194A when we paid interest on that loan.

My main question is, Can I deduct TDS on accrued interest as on 31st March.

please suggest.

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4 Replies

Deepa B (Practicing Chartered Accountant ) (573 Points)
Replied 13 July 2021

Yes. You have to deduct tax on accrued interest as well. Because the section states that tax is deductible at the time of crediting income to such account or at the time of payment, whichever is earlier.

Soumyaranjan Samal (fresher) (179 Points)
Replied 13 July 2021

Thanks

Balamurali Unnithan MS (STUDENT) (1631 Points)
Replied 14 July 2021

Check the rule for Individual Assesee(if you are) not comes u/s 44AB - For Sec.194A.

TDS XVIIB -Normally attracts for payments -due or receipt - whichever is earlier.

If, due comes 1st, Not deduct on the due basis, deduct on receipt basis as well.