Tds on interest on partners loan (current account)

This query is : Resolved

Deepak (Querist)
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15 March 2018 Good morning all,

Is TDS need to be deducted if firm pays Interest on Partners Loan (Current A/c)?

Please clarify me section 194A(3)(iv)

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 March 2018 The provisions of section 194A do not apply to interest credit or paid by a partnership firm to its partners. Thus, in this case, the firm is not liable to deduct tax from interest paid to partners.

Deepak

Deepak (Querist)
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15 March 2018 Thank you sir for clearing my doubt.

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