Tds for proprietor

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2013 Dear experts,

If a proprietor maintains separate set of books for proprietary firm and personal books and the firm is subject to tax audit in previous yrs , then any interest paid from personal books is liable for tds?

Thanks in advance.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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02 December 2013 He is liable to TDS as being an assessee under the tax audit provisions,he is legally bound to deduct TDS on any interest payment exceeding Rs 5000/-.
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Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2013 But he is taking loan in his personal name and den transferring loan amt in firms books of account. .

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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02 December 2013 Why he is not taking loan in the firm directly ?