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.
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.
CAclubindia
