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TDS on interest payable on loan given by individual to proprietorship company

TDS 302 views 5 replies

ADHIP KUMAR MISRA

ACCOUNTS MANAGER

179 Points Joined April 2019

An individual has given a loan to a proprietorship company in the beginning of the current financial year. Till date the loan has not been repaid . The interest due to him on the loan repayable is more than Rs 5000 . Is TDS deductible and to be booked in accounts now , even though the loan is not to be repaid as of now ? Please clarify .

Replies (5)

Kiran Hathalia

837 Points Joined June 2017

TDS liability is attracted to individual only when the person comes under the purview of section 44AB i.e. tax audit. Therefore, in the given case if the individual is liable for tax audit then tds on interest to be deducted.

ADHIP KUMAR MISRA

ACCOUNTS MANAGER

179 Points Joined April 2019

Thanks for the reply .

Apurv Agrawal

101 Points Joined August 2017

Yes if interest in loan exceed Rs. 5000 during any time during F.Y. then TDS liability arises on payer of Int. irrespective of fact whether loan has been square up or not..