A partnership professional income tax audit firm cash loan from Mr.A rs:10 lacs interest on loan amount rs:1,20,000/- tds not deducted
question:
1.tds not deducted on interst amount 30 percentage interest amount added or
2. loan amount transferred to partner capital account.
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Un secured loans interest 30 percentage added
Replies (2)
If a partnership professional income tax audit firm takes a cash loan from an individual (Mr. A) and the interest on the loan amount is Rs. 1,20,000/- and TDS is not deducted, then the partnership firm is required to deduct TDS at the rate of 30% on the interest amount and deposit it with the government.
In addition to that, if the loan amount is transferred to a partner's capital account, then it will be considered as capital contribution and will not be taxable in the hands of the partner.
If partnership form taken loan and pay int exceed 5000 firm required to deduct tds @ 10% if firm not deduct tds interest expenditure shall be disallowed @ 30%
if the loan amt is t/f to capital account then it will treat as capital contribution and no tax liability arise
if the loan amt is t/f to capital account then it will treat as capital contribution and no tax liability arise
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