Tds on interest on borrowed capital?

Facts of the case -

Assessee borrowed capital from his mother for the purposes of this business.. 

Assessee wants to pay interest on that capital

Queries - 

1. Can the assessee pay Interest on Capital? If yes, at what percentage?

2. Does he need to deduct TDS for this Interest on Capital? If yes, at what percentage?

3. What is the last date to deduct & deposit such TDS?

4. Does the assesee require TAN number for such TDS deduction?

 

Please help me out. 

Thanks in advance. 

 

Replies (1)

"1. Can the assessee pay Interest on Capital? If yes, at what percentage? "               YES, anything reasonable.

2. Does he need to deduct TDS for this Interest on Capital? If yes, at what percentage?"          YES, Only & Only if his accounts were tax audited u/s. 44AB in preceeding year.

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