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tds on personal payaments

1476 views 3 replies

sumit

CHARTERED ACCOUNTANT

59 Points Joined May 2007

As per the provisions of the Income Tax Act, an individual is liable to deduct tax on certain payments, in case his turnover / gross receipts during the year immediately preceding the year in which the payments are to be made, exceeds the limits prescribed under section 44AB of the Act. Now, the question is whether he is also liable to deduct tax on payments which are exclusively for his personal purposes and have got nothing to do with his business say interest on loan/ housing loan from any person / private institution? Please suggest.

Replies (3)

Ramawatar Joshi

Chartered Accountants

36 Points Joined January 2008

Yes he/she is liable to deduct TDS

R. A. Joshi

Rinesh Sanghavi

Chartered Accountant

31 Points Joined October 2007

no he is not liable for deduction of TDS on personal payents.

see if he is not deduct tds ecpenditure on which tds not deducted will not be allowed as business expenditure and personal payments are any how not claim as business expenditure.

No individual or HUF shall be liable to deduct income tax on the sum credited or paid to the accout of the contractor where such sum is credited or paid exclusively for personal purposes of such individual or any member of HUF.