tds applicable to NRE Partner in india firm

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.

Originally posted by : Sanwala Ram Suthar
	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 ?

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

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