04 June 2011
FOR SECURED LOANS AND UN-SECURED LOANS TDS WILL BE DEDUCTED? TDS PAYMENT WILL BE MADE ON AT THE TIME OF PAYMENT OR AT THE TIME OF BILL RAISED. HOW MUCH TDS INTEREST RATES.
TDS shall be deducted on interest on any kind of Loan,whether loan is secured or unsecured, if the interest amount exceed the limit given in the Act.
TDS shall be deducted at the time of payment of interest or at the time it become payable, which ever is earlier.
Interest on non payment of TDS is as below: from the date on which it should have been paid to the date of deduction of TDS @ of 1% for every month or part of month. from the date on which it has been deducted to the date on which it has been paid. @ 1.5% Per month or part of month.
for example: if the due date is 7 june and it has been deducted on 31 aug and same has been paid on 5 jan than interest shall be charged up to 31 aug @ of 1% for month or part of month and from 1 sep to 5 jan it should be charged @ 1.5% for month or part of month.
CAclubindia
