Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 April 2014 i am pay Remuneration to our director Rs.1680000/- in f.y.2014-15 & a interest on unsecured loan Rs.802500/-
Total amount pay Rs.1680000/- plus Rs.802500/- Total paid Rs.2482500/-during f.y.2014-15 .
tds deduct on remuneration rs.344020/-
tds deduct on interest rs.80250/-
i am right or wrong
please give me reply.........

vibhor

vibhor (Expert)
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30 April 2014 From my point of view, Tax should be deducted on total Income basis as both the Incomes are paid by one company itself. Add Interest Income in 'Other Income' of Director's Form 16 and then compute total tax liability. Although that tax has to be paid by Director at the time of filing his personal ITR, but preferably, TDS should be calculated on total income from Company. It will also avoid Advance tax liability & Interest u/s 234B & C.

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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30 April 2014 you cannot club interest paid with remuneration. you have correctly deducted the taxes. Director should ensure payment of balance taxes on his own.

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Rupesh Jain

Rupesh Jain (Expert)
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30 April 2014 if your director is full time and on company pay roll then you have deduct tds on remuneration as salary.
otherwise deduct u/s 194 J @ 10%

and on interest u/s 194A @ 10% on intt. amount.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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30 April 2014 even in case of salaried director, interest is not covered under 192. please refer section 17 for the definition of salary.

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
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03 May 2014 TDS deduction on interest is done correctly but while making TDS on salaries, you need to consider "other income" of the employee and Taxes paid on those incomes.
By that way, you may need to deduct more TDS under 192B.