T.d.s.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2011 I am Proprieor of Jalarm Industries . I have paid interest on loan of Rs. 28000/- (TAKEN FROM SOME PERSON - as unsecured loan)during the month of April'2011 . Whether i have to deduct tax as T.D.S. .If yes then what is the time limit for payment i.e. deposit of tax . What is the penalty for late payment of tax (T.D.S.) & under which section it cover. i am liable for audit.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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26 July 2011 Interest paid to any banking company to which Banking Regulation Act, 1949 applies is not subject to tax deduction. Thus, any interest on loan obtained from banks are not subject to TDS.

So. just clarify..the source of your loan. Is it a banking company or non-banking company ?

CA Vibhash Kumar Sah

CA Vibhash Kumar Sah (Expert)
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26 July 2011 Deduction of IT from payment is also dependent Assessee type. If u business (proprietorship or Partnership)dont require tax audit u/s44AB, you are not liable to dedcut tax.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 July 2011 First you have to define "I".
Whether "I" is and Individual ?
Whether "I" is covered under Tax aduit U/s 44AB (a) or 44AB (b).

If he is not covered unde rtax audit , there is no requirement for such individuals or HUF to deduct tax at source.