Tds on amount paid as interest towards loan

Dear Friends,

Hello!

I would be obliged to receive answers to the following: (The individual's business is online commodities trading, in which he takes amounts on loan from individuals and pays them monthly interest @ 4% per month)

1. Is TDS to be deducted from the amount paid as interest, if the interest amounts exceeds Rs 20,000/- p.a., towards loans received from individuals? If yes, is it 10.3% on the interest amount payable?

2. Can the amount of TDS be deducted monthly wise and be paid at the end of the year in March in one lumpsum or does it have to be paid monthly wise only?

3. Is it also correct that if the individual's turnover is less than Rs 60 lakhs, it is not mandatory to deduct TDS from such amounts? And how is the above turnover to be calculated? What shall constitute the turnover, only the profits or losses or both to be added? Or the value of the sale/purchase?

4. Can TDS be deducted only once at the end of the year in March only and paid in the same month? Or is it mandatory to deduct & pay the same every month?

Thanking you all in anticipation,

Truly yours,

B S BHMRA

1. Interest Amount if it exceeds 5000/- or 10000/- as the case may be then TDS at 10% only and not 10.3%

2. Amount of TDS can be paid at the end of the year or before the due date of filing of return to avoid disallowance . But mind u u have to suffer Interest for this act @ 1.5% P.M.

3. Yes it is true that If TO even if exceeds 60 lakhs then no need to deduct TDS in the first year of TAx audit . It should be the first year and not subsequently. Turnover in simple terms is Gross receipts of the business. (This provision is only for Individual and HUF and not for others)

4. TDS To be deducted every month . Rule is TDS to be deducted at the time of payment or credit whichever is earlier. Make the payment on due dates to avoid paying interest.