Tds on interest paid by a firm to minors son of a partner

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Satish Kumar

Partner

43 Points Joined July 2013

Dear Sir/Madam, I've a query on TDS on Interest paid by a Partnership firm to Minors son of a Partner, i.e., Should i deduct TDS on the interest paid to Partner's Minor son? If to deduct, on whose PAN should i deduct? If on Minors PAN, will 64 Clubbing provisions apply and when the above Partner ( Parent) files income tax return, how to getTDS Credit? Whether interest @ 12% p.a. U/s.40(b) will be applicable even to Interest paid to Partners minor son?

Pls Clarify me w.r.t provision of Sec 40(b), 40(a)(ia), 64 and 194A.

Thanks in Advance. CA.Satish Kumar.

Replies (5)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

please clarify whether the minor son is a partner in the firm or not?

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

clubbing provisions are applied in all circumstances,

the income would get clubbed in hands of father or mother whose income is in higher bracket, but if the deduction is made in PAN of minor son then credit of TDS would be get a little bit hard side

sahil

student

127 Points Joined December 2015

if son is not a partner, then full interest is allowed as a deduction

Guest

Payment to minor son requires TDS to b deducted on minor's PAN only.. Clubbing provisions will apply, Partner will claim TDS deducted on minor's PAN. However, AO will have to be satisfied on this issue since CPC Bangalore cannot allow such credit.

Guest

However, as a tool of convenience, you can deduct TDS on Partner's PAN. Credit will be allowed at CPC Bangalore itself..