Pay tds on interest on loan at the time of payment?

vinayak c. chavan (CPT passed) (1011 Points)

06 August 2012  

Should I deduct & pay TDS on interest on loan at the time of its payment? We are private limited co.. we have repaid loan taken from one of the partner and now there is no due remaining to him. Should I deduct interest & TDS on it & pay  the same? we make payment of loan on 01.08.2012