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Tds liability

MD GULFAM (SR. ACCOUNTANT) (34 Points)

29 January 2017

Sir,

My queary is related to TDS Liability

We are in Saree Handloom Trading Business, in a sole propritorship, under Tax audit 44AB, I have taken unsecured loan from my relatives and now I have to pay interest on the same,

so my question is:

1. What is the limit to pay interest on unsecured loan from relatives or others ?

2. If I am paying interest than whose liability to pay TDS ?

3. Can I deduct TDS on same.?

4. If I deduct TDS then how can I deposit the same because I have no TAN no.

5.Without TAN can I able to deduct TDS on unsecured loan?

Requested to reply indicating serial no of questions

Thanking you

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3 Replies

Jaspreet (CA) (63 Points)
Replied 29 January 2017

Hi,

1. As such there is no limit. It depends on the agreement between the parties.

2. The payer is liable to deduct and deposit the tax. So u are responsible for deducting the TDs.

3. Yes u can deduct the TDs if the interest amount is more than the threshold limit.

4. Deductor must have Tan no.or you should apply for the same. U can deposit the TDs online from the income tax site by mentioning allotted tan number.

5. Without TAN u can not able to deposit the TDs.

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pankaj (A.C.A) (93 Points)
Replied 30 January 2017

first you take TDS no. after if you interest paid or credit more then 5000/ then you deducted 10% TDS and deposit sec 94A if assessee provide form no. 15g/h then no required deduct tds