Hello,
I am a full time trader and treat my Share trading income as business income. I used MTF facility and paid around 2 lakhs as interest in the FY 2025-26. I connected with my CA, he told since the turnover is more than 10Cr , Tax audit u/s 44AB is applicable, so i need to deduct tds @ 10% u/s 194A. But how can i deduct tds as it is automatically debited from my account. I contacted with Zerodha and none of there customer care executive is aware abount this. Can anyone help me with this, will zerodha provide the refund of TDS if a furnist form 16A for tds deposited?
Still no reply from anyone.
Please help if anyone from zerodha or some other forum member know solution. It’s urgent as TDS return last date is 31st July 2026. I have sent several mails to zerodha but they don’t even understand the issue.
Hello @Jain
You are right about TDS deduction that TDS needs to be deducted on Interest paid to MTF but there is also one exception to it that if the entity to whom you are paying interest shows the full amount as an Income in the return filing and pays tax on it then it is not required to deduct TDS on it and also no disallowance of expense under Income tax act would attract.
But how will i got to know that Zerodha has shown the full income. IT deptt will never accept this reasons. What if i deposit TDS and submit form 16A and zerodha refunds the TDS amount. I think this is only pratical and feasible solution.