One of my client the discontinue of proprietorship business activities from April 2010, Now he started new proprietorship business other trade name from April-2011. In FY 2009-10 he has deducted TDS on Interest, commission & other contract and paid to Government Accounts. In FY 2011-12 the TDS will applicable or not on Interest & commission & others. I think this is the first year of business as a proprietorship concern thus the TDS not applicable. The business turnover for FY 2011-12 will around 70 & 85 Lacs. Kindly suggest the same.
14 April 2011
tds is to be deducted if in case of individual and huf the accounts were audited in the preceeding fy though he is starting business under new name but if his accoubts were audited in fy 10-11 he is liable to deduct tax this year. It is to be understood this liability or compliance is assessee based and not business based
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