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Tds on interest

P.Mishra (Accountant) (155 Points)

17 August 2013

I have taken personal loan 1/4/11 from proprietor firm and I have paid full loan in 31/12/12. and I have paid interest on loan approx Rs. 300000 than I deduct tds or not on interest? plz help

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5 Replies

Sachin Rajput (account exe) (593 Points)
Replied 17 August 2013

u taken personal loan as u r individual so no need to deduct tds.

NAGASAI.K (Article Assistant) (193 Points)
Replied 17 August 2013

Individuals and HUF does not come under sec 194A -TDS on interest other than interest on securities

so you should not deduct tds while payment of interest to the proprietor firm

P.Mishra (Accountant) (155 Points)
Replied 17 August 2013

thanks Sachin Rajput & Nagasai .K

P.Mishra (Accountant) (155 Points)
Replied 28 August 2013

When I'll file my IT return than can I less personal loan interest in my other head income? Suppose my business income500000 Bank interest income 30000 Interest paid on personal loan 200000 What's my taxable income?

Madhu Hegde (article assist) (62 Points)
Replied 28 August 2013

You should not deduct the said intrest from your income because it is a personal loan,but if you taken that loan as house loan than you can deduct Rs.30,000/- or 1,50,000/- as the case may be under sec-24(b) of the IT act 1961 under the Income head of House property.

Now your GTI is 5,00,000+30,000=5,30,000