31 January 2013
Mr. A has proprietary concern ABC which is covered by section 44AB and has taken loans from various parties. During the FY 2012-13 ABC has has paid Interest on these loans on which tax has been deducted at source.But he also has loans in his personal capacity and he has not deducted tax at source on it.whether he was liable to deduct tax at source?
04 February 2013
Eshwar, PAN and TAN may be taken in the name of the Proprietor A. He may have any no. of business in his name as proprietorship. So he is liable to deduct tax on all heads deductible under IT Act. Hence he has to deduct TDS on interest paid on his personal capacity other than ABC concern also. please Wait for other Experts reply also.
04 February 2013
Sir, assessee says that if interest income earned in personal capacity is shown as INCOME FROM OTHER SOURCES and deduction is claimed for interest expense in personal capacity then the TDS provisions can be avoided...but when read the provisions of section 194A no such clarity could be acjieved...but section 194C specifically mentions that contract expenses in personal capacity do not attract tds provisions
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