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Whether TDS to be deducted on interest paid by an individual

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Querist : Anonymous

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Querist : Anonymous (Querist)
29 September 2010 Dear Sir/Madam,
I am a proprietor (individual) of a manufacturing unit. I want to give interest against the loan taken from some one in my business. Can I give interest against the loan taken and do not deduct TDS.

I came to know from someone that if a person in Individual ( proprietorship) capicity makes payment of TDS, he is not required to deduct TDS.

Regards
Thanks in advance
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CMA. Subhash Kumar Jha

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CMA. Subhash Kumar Jha (Expert)
29 September 2010 You are right, provided there is no applicability of Tax audit under section 44 AB.
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Querist : Anonymous

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Querist : Anonymous (Querist)
29 September 2010 But Sir my business is applicable for TAx audit a my turover is around 80 lakhs. Then what will be the status
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CMA. CS. Sanjay Gupta

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CMA. CS. Sanjay Gupta (Expert)
29 September 2010 In that case you need to deduct TDS otherwise the interest on loan will not be allowed as expenses.
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CA Punit

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CA Punit (Expert)
29 September 2010 You will have to deduct TDS on payment in current year, if Tax Audit was applicable last year.

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