There is no specific exemptions from tax deduction at source in case of payments of personal nature, in respect of the cases covered in Section 194A (interest), Sec. 194H (brokerage), and Section 194-I (Rent).

There does not seem to be any logic to deduct tax at source on payments made on personal account. Merely because an assessee happens to be a proprietor of a concern which is liable for tax audit u/s 44AB of the Act, he should not be made liable for tax deduction on the payments made for personal purposes. He should be treated at par with other individuals.


The exemption from tax deduction at source on the payments made for personal purposes may be extended to the payments covered u/s 194A and 194H and 194-I of the Act, in line with the provisions made in section 194J. 

Similar amendments may be carried out to provide the aforesaid exemption for TCS provisions as well.

Source-  ICAI Pre- Budget Memorandum–2018 (Direct Taxes and International Tax)
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