We are a partnership Firm. This Year (F.y.2010-11) we are payable Interest on Capital for Both Partners Rs. 2,00,000 Each. Please suggest us can we deducted TDS agianst Interest on Capital.
niloy sanyal (account manager) (777 Points)
21 March 2011We are a partnership Firm. This Year (F.y.2010-11) we are payable Interest on Capital for Both Partners Rs. 2,00,000 Each. Please suggest us can we deducted TDS agianst Interest on Capital.
Devendra
(Chartered Accountant)
(4775 Points)
Replied 21 March 2011
There is no need to deduct TDS on Interest paid or credited by a firm to any of its Partners.
Regards,
Devendra K
Ram Thakkar
(CA final )
(126 Points)
Replied 21 March 2011
ya there is no need to deduct tds interest on capital
Tehsinkhan Pathan
(CA CMA DISA(ICAI) B.COM)
(3956 Points)
Replied 21 March 2011
AS PER SECTION - 194A , THERE IS AN EXCEPTION FOR FIRM WHERE THERE IS NO NEED TO DEDUCT TDS FOR ANY INTEREST PAYMENT MADE TO PARTNER BY FIRM.......
Anish M.S
(Internal Auditor)
(116 Points)
Replied 22 March 2011
achyuthanand
(Audit executive/ CA Final)
(283 Points)
Replied 22 March 2011
there is no need to deduct TDS
Bharadwaj
(Self Employed)
(177 Points)
Replied 22 March 2011
| Originally posted by : Anish M.S | ||
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As per section 194A(3)(iv) interest income credited or paid by firm to a partner of the firm is not subject to TDS. Thus, TDS is not required to be deducted in the following cases. 1)Interest paid to partners by the partnership firm on the partners capital and 2)Interest paid to Partners by the partnership firm on the Unsecured Loan given by the partners |
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