srikumar (audit staff) (1203 Points)
06 June 2019my client has partnership firm, turnover 2 croes over. my doubt was firm took loan from one of it's partner rs. 8 lakhs monthly interest exceed 50,000 rupees. can I deduct tds on such partner ?
tds applicable or not sir
Varun Malhotra
(social)
(342 Points)
Replied 06 June 2019
No. TDS not applicable over Interest paid by a partnership firm to its partners.
PUSHP KUMAR SAHU
(CA FINAL ASPIRANT)
(3115 Points)
Replied 06 June 2019
CA Raj Doshi
(Practising CA)
(8903 Points)
Replied 07 June 2019
Ajay Gupta
(PRACTICING CHARTERED ACCOUNTANT)
(196 Points)
Replied 07 June 2019
When interest is paid by the firm to its partner(s), provisions of under section 194A are not applicable.
So no TDS on any interest paid by the firm to its partners.
CA Rizu
(1)
(26 Points)
Replied 07 June 2019
As per section 194A(3)(iv) of the Income Tax Act, 1961 the interest paid to partners to not liable for deduction of TDS.
Refer the link - https://indiankanoon.org/doc/1155661/
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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