State the rate of tax deductible or collectible at source under the provisions of the Income-tax Act, 1961 in respect of the following transactions: Interest paid by Lalwani & Co. (firm) to Ravi (a resident) ₹ 7,000.
CS Executive · Tax Laws · PYQS · December 2018
State the rate of tax deductible or collectible at source under the provisions of the Income-tax Act, 1961 in respect of the following transactions: Interest paid by Lalwani & Co. (firm) to Ravi (a resident) ₹ 7,000.
Answer & Explanation:
Interest paid by the partnership firm exceeding ₹5,000 is liable for TDS @ 10% u/s 194A of the Income tax Act, 1961. Therefore, interest paid by Lalwani & Co. (firm) to Ravi (a resident) ₹7,000 is liable for tax deduction at source 'TDS' as the payment exceeds the threshold limit.
Topics: Income Tax Act, 1961
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