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Interest on Loan

Jatin (Accountant) (3479 Points)

14 January 2019

Interest paid on Loan to Citibank (Foreign Bank)

Is TDS applicable ?

Any reporting required for such transactions in TDS statement

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7 Replies

PUSHP KUMAR SAHU (CA FINAL ASPIRANT) (3115 Points)
Replied 14 January 2019

THERE IS NO REQUIRMENT OF TAX DEDUCTION ON INTEREST...... PAID ON LOAN TAKEN FROM BANKING COMPANY....

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Jatin (Accountant) (3479 Points)
Replied 14 January 2019

Thanks Pushp,

Any reporting required in TDS return

Loan from foreign bank

PUSHP KUMAR SAHU (CA FINAL ASPIRANT) (3115 Points)
Replied 14 January 2019

NO ....THERE IS NO SUCH REQUIRMENT

Jatin (Accountant) (3479 Points)
Replied 14 January 2019

Any certificate required from Foreign Bank for Audit purpose

PUSHP KUMAR SAHU (CA FINAL ASPIRANT) (3115 Points)
Replied 14 January 2019

SIR....ARE YOU LIABLE FOR TAX AUDIT

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Jatin (Accountant) (3479 Points)
Replied 14 January 2019

yes...............

PUSHP KUMAR SAHU (CA FINAL ASPIRANT) (3115 Points)
Replied 14 January 2019

AS PER PROVISIONS OF SECTION 43B...YOU HAVE TO PAY THE AMOUNT OF INTEREST ON LOAN ON OR BEFORE FILING RETURN U/S 139(1) ...THERE IS A CLAUSE IN TAX AUDIT REPORT WHERE PAYMENT OF STATUTORY DUES AND INTEREST IS MANDATORY BEFORE FILING RETURN ..... THESE EXPENSES ARE ALLOWED ON ACTUAL PAYMENT BASIS ..(NOT ON ACCRUAL BASIS)....THEREFORE YOU ARE REQUIRED TO GET INTEREST CERTIFICATE ...TO SHOW THE AUDITOR THAT INTEREST IS PAID ..AND SHOULD BE ALLOWED AS EXPENSE..