Tds on interest where that interest isn't charged to business

Hello Ravi,

TDS is governed by seperate sections of Income Tax Act, i you are under any of the following sections limit TDS has to be deducted, otherwise there are various repurcurssion from Income Tax Department like Penalties, interest, fees and disallowancw of expenditures.

So even though you are not charging anything to P/L, you will have other legal prosecutions for not deducting TDS.

DEAR SIR 

I AGREE WITH YOU ,

BUT  THERE IS NO NEED TO DEDUCTEE TDS OF ANY PAYMENT , WHICH IS NOT EFFECTE TO P&L A/C

BECAUSE A.O.   CROSS CHECH PAYMENT MADE FOR EXPENSES ONLY .

SO PAYMENT MADE AS INTEREST NOT DEBIT TO ANY EXPENSE A/C AND DIRECTALY DEBIT TO CAPITAL A/C 

DO NOT NEED DEDUCTE TDS.

IF YOU MAKE PAYMENT AND DEBIT TO CAPITAL A/C THAN IT IS NOT EXPENSES 

AS ABOVE SAID SAYS THAT THE LOAN AMOUNT TAKE FOR PERSONA USE 

THANKS  

Hi Saurabh,

My Point is, since i have not claimed any expense how can there be disallowance....?

Sir,

Though there would be no disallowances, howverv you shall be liable to pay penalty and interest as per TDS provisions.

It will not be required to deduct TDS in case of expenses are not charged to P & L. since if TDS is not deducted then 30% of expenses are disallowed. But in this case, we are not claimig any expenses. Hence no disallowance will arise.