Interest on unsecured loan
This query is : Open
13 September 2013
TDS on interest on unsecured loan is not deducted. Can anyone tell me under which circumstance, circular, notification or case it is mention???
13 September 2013
Go to the below link:
It covered under section 194A.
http://taxguru.in/income-tax/tds-tcs-rates-financial-year-201112-assessment-year-201213.html
It covered under section 194A.
http://taxguru.in/income-tax/tds-tcs-rates-financial-year-201112-assessment-year-201213.html
Message likes :
1 times
13 September 2013
You can go to the following link which given details of section 194A:
http://law.incometaxindia.gov.in/DitTaxmann/incometaxacts/2007itact/sec_194a.htm
http://law.incometaxindia.gov.in/DitTaxmann/incometaxacts/2007itact/sec_194a.htm
13 September 2013
Respected Sir(Ajay Misha).... I wish to know where is it mention that interest on unsecured loan is non deductible of TDS.
13 September 2013
Respected Sir(Ajay Misha).... I wish to know where is it mention that interest on unsecured loan is non deductible of TDS.
13 September 2013
Section 194A talks about deduction of TDS on Interest on other than securities, but it not says that you will not deduct TDS.
The above link you can refer for the same.
The above link you can refer for the same.
13 September 2013
Interest(other then interest of securities) are cover under 194A. Interest on Unsecured loan is exempt under 194A. therefor i wish to know the cirular, notification or case with mention that interest on unsecured loan is exempted under 194A.
13 September 2013
first of all see amount of interest paid under minimum amount not chargable to tax.
13 September 2013
monetary limits
a) payer is banking company :Rs10,000
b) Payer is Co-op So engaged in business of carry banking : 10,000
c) Deposit with post office under any scheme by Central Gov. : 10,000
d) In any other case : 5,000
Note: Interest on secured may be come under any other case but again i am repeating interest of unsecured loan is exempted under TDS (194A) then there is not requirement to see these limits.
a) payer is banking company :Rs10,000
b) Payer is Co-op So engaged in business of carry banking : 10,000
c) Deposit with post office under any scheme by Central Gov. : 10,000
d) In any other case : 5,000
Note: Interest on secured may be come under any other case but again i am repeating interest of unsecured loan is exempted under TDS (194A) then there is not requirement to see these limits.
13 September 2013
Applicability of the provisions in respect of income paid or credited to a member of co-operative bank
Circular : No. 9/2002, dated 11-9-2002.
1. Under section 194A of the Income-tax Act, 1961 tax is deductible at source from any payment of income by way of interest other than income by way of interest on securities. Clause (v) of sub-section (3) of section 194A exempts such income credited or paid by a co-operative society to a member thereof from the requirement of TDS. On the other hand, clause (viia) of sub-section (3) of section 194A exempts from the requirement of TDS such income credited or paid in respect of deposits (other than time deposits made on or after 1-7-1995) with a co-operative society engaged in carrying on the business of banking.
2. Representations have been received in the Board seeking clarification as to whether a member of a co-operative bank may receive without TDS interest on time deposit made with the co-operative bank on or after 1-7-1995. The Board has considered the matter and it is clarified that a member of a co-operative bank shall receive interest on both time deposits and deposits other than time deposits with such co-operative bank without TDS under section 194A by virtue of the exemption granted vide clause (v) of sub-section (3) of the said section. The provisions of clause (viia) of the said sub-section are applicable only in case of a non-member depositor of the co-operative bank, who shall receive interest only on deposits other than time deposits made on or after 1-7-1995 without TDS under section 194A.
3. A question has also been raised as to whether nominal members, associate members and sympathizer members are also covered by the exemption under section 194A(3)(v). It is hereby clarified that the exemption is available only to such members who have joined in application for the registration of the co-operative society and those who are admitted to membership after registration in accordance with the bye-laws and rules. A member eligible for exemption under section 194A(3)(v) must have subscribed to and fully paid for at least one share of the co-operative bank, must be entitled to participate and vote in the General Body Meetings and/or Special General Body Meetings of the co-operative bank and must be entitled to receive share from the profits of the co-operative bank.
Circular : No. 9/2002, dated 11-9-2002.
1. Under section 194A of the Income-tax Act, 1961 tax is deductible at source from any payment of income by way of interest other than income by way of interest on securities. Clause (v) of sub-section (3) of section 194A exempts such income credited or paid by a co-operative society to a member thereof from the requirement of TDS. On the other hand, clause (viia) of sub-section (3) of section 194A exempts from the requirement of TDS such income credited or paid in respect of deposits (other than time deposits made on or after 1-7-1995) with a co-operative society engaged in carrying on the business of banking.
2. Representations have been received in the Board seeking clarification as to whether a member of a co-operative bank may receive without TDS interest on time deposit made with the co-operative bank on or after 1-7-1995. The Board has considered the matter and it is clarified that a member of a co-operative bank shall receive interest on both time deposits and deposits other than time deposits with such co-operative bank without TDS under section 194A by virtue of the exemption granted vide clause (v) of sub-section (3) of the said section. The provisions of clause (viia) of the said sub-section are applicable only in case of a non-member depositor of the co-operative bank, who shall receive interest only on deposits other than time deposits made on or after 1-7-1995 without TDS under section 194A.
3. A question has also been raised as to whether nominal members, associate members and sympathizer members are also covered by the exemption under section 194A(3)(v). It is hereby clarified that the exemption is available only to such members who have joined in application for the registration of the co-operative society and those who are admitted to membership after registration in accordance with the bye-laws and rules. A member eligible for exemption under section 194A(3)(v) must have subscribed to and fully paid for at least one share of the co-operative bank, must be entitled to participate and vote in the General Body Meetings and/or Special General Body Meetings of the co-operative bank and must be entitled to receive share from the profits of the co-operative bank.
13 September 2013
Ram Avtar Singh Sir. My question is related to interest on unsecured Loan and you are giving explanation of Exemption related to Co-Op Sco. involved in business of banking.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
