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Tds on unsecured loan

02 June 2018

Hi anybody can tell me tds limit on interest on unsecured loan is rs 5000 ...Will it be annual interest amount or monthly interest amount???

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13 Replies

CA Ankit R Momaya (Partner at Bhat Momaya & Associates) (2319 Points)
Replied 02 June 2018

It is annual interest amount.

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Rajkiran Ghosh (479 Points)
Replied 02 June 2018

ok sir. if i take unsecured loan on march 2018.and the interest amount doesnot exceed rs 5000 in march month 2018 i mean in f.y. 2017-18.. but if i consider from the period march 2018 to feb 2019 then interest amount on unsecured loan exceeds rs 5000 ... so in that case which period will consider f.y. 2017-18 for march 2018 or the period frim mar 2018 to feb 2019???? plz reply sir

CA Ankit R Momaya (Partner at Bhat Momaya & Associates) (2319 Points)
Replied 02 June 2018

It is considered financial year wise. so for 17-18 no TDS

Rajkiran Ghosh (479 Points)
Replied 02 June 2018

ok sir fine then tds will be deducted from the period april 2018....Am i right sir????plz reply sir

CA Ankit R Momaya (Partner at Bhat Momaya & Associates) (2319 Points)
Replied 02 June 2018

Right only from April - February

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Rajkiran Ghosh (479 Points)
Replied 02 June 2018

i will continue loan amount then march 2019 will i deduct tds on unsecured loan??? as my interest amount exceeds rs 5000 from the period april2018 to march 2019...sir plz reply

CA Ankit R Momaya (Partner at Bhat Momaya & Associates) (2319 Points)
Replied 02 June 2018

Ye you are liable to deduct TDS on interest paid for entire Financial Year

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Rajkiran Ghosh (479 Points)
Replied 02 June 2018

sir plz reply

CA Ankit R Momaya (Partner at Bhat Momaya & Associates) (2319 Points)
Replied 02 June 2018

Yes, you are liable for TDS on interest paid for entire FY i.e. April to March. Hope this is clear

Rajkiran Ghosh (479 Points)
Replied 02 June 2018

yes sir. sir one thing plz clear me if i pay professional fees to the person in march 2018 of rs 25000 and in that case i donot deduct tds in f.y. 2017-18 as i pay professional fees below rs 30000 in f.y. 2017-18.... am i right sir ???? plz clear me.....

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CA Ankit R Momaya (Partner at Bhat Momaya & Associates) (2319 Points)
Replied 02 June 2018

You are not liable to deduct TDS in the above case.

Rajkiran Ghosh (479 Points)
Replied 03 June 2018

sir i have taken rs 10000000 unsecured loan in jan 2012 i alerady deduct tds on interest amount on unsecured loan in f.y.-2017-18 . but i have taken some few amount unsecured loan in march 2018 ... where i calculate that the interest amount on additional some amount loan does not exceed in f.y. 2017-18...so can i deduct tds on some amount of additional unsecured loan in f.y. 2017-18 ???? plz reply sir