Applicability of tds provision

This query is : Resolved

Premal S. Jani (Querist)
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22 March 2017 Respected Sir,

If a person opts for not to declare his professional income U/s. 44 ADA, than he has to get his book of accounts audited U/s. 44 AB. Now if one opts for this situation for F.Y. 2016-17, than in such case his books get audited by Sept.-17.

Now in this situation whether one needs to deduct TDS from 01/04/2017 for F.Y. 2017-18 OR from 01/04/2018 for F.Y. 2018-19, since he been audit during F.Y. 2017-18 ?

If from F.Y. 2017-18 than is such case almost 2 quarters are passed when the liability to deduct tax becomes certain on such assessee than what to do if some expenditure has been paid without deducting TDS during F.Y. 2017-18 ?

Thanking you in anticipation.

Waiting for your reply.

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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22 March 2017 First thing, The exemption from tds w.r.t to tax audit is applicable only in case of individual and HUF.

and Second thing, if payments are within limits of TDS i.e. within limits on which TDS is not required to be deducted then there is no problem