my client has partnership firm, turnover 2 croes over. my doubt was firm took loan from one of it's partner rs. 8 lakhs monthly interest exceed 50,000 rupees. can I deduct tds on such partner ?
tds applicable or not sir
Menu
TDS on partnership
Replies (5)
No. TDS not applicable over Interest paid by a partnership firm to its partners.
there would be a liabilty to make tds u/s 194A of income tax act, as it exceeds the threshold limit
Interest on loan from partner- TDS applicable. ; Interest on partners capital- TDS not applicable.
When interest is paid by the firm to its partner(s), provisions of under section 194A are not applicable.
So no TDS on any interest paid by the firm to its partners.
As per section 194A(3)(iv) of the Income Tax Act, 1961 the interest paid to partners to not liable for deduction of TDS.
Refer the link - https://indiankanoon.org/doc/1155661/
Recent Threads
- Heard & Seen Around – Your Daily Economi
- Query on Buy Back of shares
- Best Ca Inter coaching in Laxmi Nagar
- Why do so many SMEs struggle to scale?
- ITR Processing Delay 2025 - Common Reasons & Pr
- Heard & Seen Around – Your Daily Economi
- First time itr4 filing
- Notice of not filing GSTR 10 after 7years
- Turnover not shown in GTSR -3B want to add and pay
- Suggestion needed for CA Inter Costing for Jan 26
Related Threads
CAclubindia
