I am prorietor of my business and I have taken some loan from my friend on interest.what is limit to deduct TDs on interest paid to my friend.
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Quick Summary
This discussion clarifies the TDS (Tax Deducted at Source) requirements when paying interest on a loan from a friend. For individuals, TDS is applicable if the interest paid exceeds £5,000, with a standard deduction rate of 10%. However, this liability only arises if your business's total turnover in the preceding financial year surpassed £1 crore. The deadline for filing a revised income tax return for FY 2019-20 (AY 2020-21) is 31st March 2021.
The threshold limit for tds on interest is 5000. however, since you are a individual, the liability to deduct TDS arises only if the total turnover or sales of the immediately preceding previous year exceeds 1 crore