Should we made provision for Interest & TDS against unsecured loan?
Provision for interest on Unsecured Loan is necessary as per Accounting standard and following accrual basis of accounting Provision and Payment of TDS will be applicable if you are covered by the provisions of the Income Tax Act and if as per the provisions you are required to deduct tax at source and pay the same to the Govt. For more details refer to Accounting standards issued by ICAI and The Income Tax Act and its rules.
