Tds on interest payments

My  client is maintaning  separate Books of Accounts i.e Business Set  & personal sets. In business set which is proprietory concern having  Turn over of Rs.1.00  crores dulyy audited u/s 44 AB of the Act. In personal set   of Books of accounts , income  is Dividend ,  Bank interest ,  Capital Gain of shares etc. In persoanl Set , they have also paid interest exceeding  Rs.10000/- My question is TDs is required to be deducted  u/s 194 A  although, in personal set  ther is no business income . Proprietory Business income only clubed  in his individual Return

 

Jayesh shah CA

Replies (2)

Yes, in the eye of Income Tax PAN is the Identity, hence as per my opinion TDS is required to deduct in personal books of account also on Interest Payment exceeding 10,000/-

Dear Jayesh TDS on interest is governed by section 194A one of the the condition for non application of this TDS is as below for Individual.

Provided that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such interest is credited or paid, shall be liable to deduct income-tax under this section.

So if the Business income has increased 1 Crore it will have to deducted TDS on personal accounts interest as well. If it happen to be only other income TDS deduction was not required.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details