loan to company by director

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  1. CA rajat

    CA rajat New Member

    Dear All
    " Xyz is public ltd company.
    the Director 'X' had taken loan from the bank and the same loan was given by 'X' Director to XYZ ltd co. and The company is giving every month EMI(principle+interest) to director and the director is repay same amount to the bank"

    MY query is that
    whether the company liable to deduct TDS on interest portion (interest Amount is more than 10,000 every month)
     
  2. Saurabh Z

    Saurabh Z Member

    According to me

    Section 194A Cleary states that any person (other than ind/huf) should deduct tds if interest amount is more than 10,000/5,000

    in this case since director has taken a loan as in individual capacity and he is not covered by section 44AB . No tds on interest amount paid by director

    Yes the company is liable to deduct tds on interest portion since it exceeds rs 5,000
     
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