07 August 2023
Dear Sir, Our Company is Public Ltd. We offer our customers an Investment Plan Agreemnt:-
Agreements Clause:- Our Company is group of companies doing its business as Real Estate Firm doing its business in benefits in insfrastructure development, Plotting, Flats, Construction.
“Investment” means all the various Investments including, Real Estate and asset-backed investments in accordance with the terms of this agreement that have been, are being or will be entered into by the investment Manager for and on account of the investors.
The Compnay will pay total amount of investor (including Principal amount and Profit sharing amount) to the customer against his investment.
The Company will pay their profit sharing amount on monthly basis on their respective bank accounts.
Now, My question is that, whose Tds Section applicable on this seniro, Section 193 (Interest on Securities) or Section 194A (interest other than interest on securities).
07 August 2023
As per section 2(28B) of Income Tax Act, “interest on securities” means any interest on security (issued by the government whether state or central) and interest on debentures/securities (issued by the company a corporation or local authority established by Central, State or Provincial act). Hence, any such interest income as received above will attract tax deduction u/s 193.
CAclubindia
