https://www.taxtmi.com/caselaws?id=69792 Under section 194A, tax deduction at source on interest is confined to the income by way of interest actually payable. Where mutual accounts involve reciprocal debit and credit entries, the interest amount must be computed after set-off of those entries, because the net balance alone represents the real interest income. A mere gross entry in the head office books does not fix the deduction base if the parties' accounts show a lower amount payable after adjustment. On that basis, TDS was correctly deducted only on the net interest remaining after set-off. en-us Thu, 13 Nov 1980 00:00:00 +0530 Tue, 12 Apr 2011 11:04:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69792 Under section 194A, tax deduction at source on interest is confined to the income by way of interest actually payable. Where mutual accounts involve reciprocal debit and credit entries, the interest amount must be computed after set-off of those entries, because the net balance alone represents the real interest income. A mere gross entry in the head office books does not fix the deduction base if the parties' accounts show a lower amount payable after adjustment. On that basis, TDS was correctly deducted only on the net interest remaining after set-off. Case-Laws Income Tax Thu, 13 Nov 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69792