sajay kumar (IPCC STUDENT) (162 Points)
22 October 2010can any body please claryfy ny doubt
u/s 40a(3) any interest commission brokerage rent etc oaid by assesse to resident with out tds or remmiting to tax department is disallowed. but my doubt is
if a person paying interst to a resident rs 50000. accordig to sec 40a(3) he has to deduct tax at soucre. but income of a person chargeble to tax when ever his oncome exceeds certain limits. so the interest in this case is chargeble to tax . pleease answere me any body
Max Payne
(employed)
(2569 Points)
Replied 22 October 2010
| Originally posted by : sajay kumar | ||
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can any body please claryfy ny doubt u/s 40a(3) any interest commission brokerage rent etc oaid by assesse to resident with out tds or remmiting to tax department is disallowed. but my doubt is if a person paying interst to a resident rs 50000. accordig to sec 40a(3) he has to deduct tax at soucre. but income of a person chargeble to tax when ever his oncome exceeds certain limits. so the interest in this case is chargeble to tax . pleease answere me any body |
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If TDS is not deducted on payment of interest to resident, disallowance is under 40(a)(ia).
The interest received by a resident is certainly chargeable to tax in his hands. But since he is below the slab limit, the charing rate of tax will be 0%. He will get refund of the TDS after filing his return of income.
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