Tds on interest paid on partners capital.

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vinay

vinay (Querist)
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23 August 2016 why TDS on interest paid on partners capital by a firm to the partners is not deducted?

ACA Anurag

ACA Anurag (Expert)
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23 August 2016 Dear Vinay,

As per section 194A(3)(IV) provision of section 194A(1) is not applicable where such income credited or paid by a firm to a partner .

So accordingly TDS is not applicable and no TDS should be deducted.

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