If interest on loan is paid without Deduction of TDS,will it be allowed as Business Expenses
TDS on interest on loan paid
Anil Singh kushwah (JOB) (85 Points)
15 May 2010
2 Replies
Ankit
(C.A.-Student)
(680 Points)
Replied 15 May 2010
it is depend upon which kind of assessee you are talking about.
If you are talking about other than banks & in the whole year interest that you have paid has crossed Rs.5000/-, then you are liable to deduct tds(for banks limit is Rs10,000/-) u/s 194A
Interest on loan paid is allowed as business expense, but if you are required to deduct tds & not deducted, then it will attract penalty provisions.
If interest on loan is paid to Non resident without deduction of TDS then that interest on loan is NOT allowed to be deducted as business expenditure
CA Punit GoSwaMi
(Chartered Accountant)
(310 Points)
Replied 16 May 2010
Yes Ankit is correct and TDS rate is 10%
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