CA Sanwala Ram Suthar (chartered Accountant) (48 Points)
12 March 2011hi
Can i pay Interest on Loan taken from NRE who is partner in the firm. can firm pay interest without deducting TDS on Interest ?
HASIQ ISMAIL
(PURSUING CA FINAL )
(110 Points)
Replied 12 March 2011
Any Income accrued or Deemed to Accrue or arise in India which is Taxable. Hence TDS has to be Dedeucted
Special provisions are applicable to non-residents that income arising from interest from deposits, interest from specified securities, income from units of mutual funds etc. are liable for taxation at certain concessional rates i.e. 10%, 20% 30% etc. At the same time, Income-tax Act also fastens a liability on persons responsible for paying to on-resident (not being a company) or to a foreign company any interest or any other sum chargeable under the Income-tax Act (excluding salary), of deducting Income-tax thereon at source at the rates in force and credit the same to Central Government account. Such deduction of tax has to be made at the time of crediting the income to the account of the payee or recipient or at the time of payment.
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 15 May 2011
| Originally posted by : Sanwala Ram Suthar | ||
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hi Can i pay Interest on Loan taken from NRI who is partner in the firm. can firm pay interest without deducting TDS on Interest ? |
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I understand that the loan must have ben taken by the firm from the NRI partner. I hope the FEMA issue must have been sorted out before taking the loan.
Also TDS on interest is manadatory.
Anuj
0-9810106211
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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