03 April 2014
The assessee ( Proprietor ) was having Tax Audit in FY 2009 - 2010. After that the Turnover Limit of Tax Audit was not crossed / reached by the assessee till date.
For all those years the assessee was deducting TDS from respective payments, depositing in time to the Government & filing E TDS Return regularly.
Can the assessee discontinue the practice of deducting TDS ? This will give relief to follow TDS formalities regarding TDS.
03 April 2014
Every person responsible for making payment of nature covered by TDS provisions of Income Tax Act shall be responsible to deduct tax.
However in case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of individual and HUF, only if the turnover or professional receipt exceeds sum of Rs. 40 lakh or Rs. 10 lakh respectively (the limits will be Rs.60 Lakh or Rs. 15 Lakh respectively w.e.f. 01.07.2010) in previous year, he is required to deduct tax at source.
Hence tds other than above mentioned sections need to be deduct.
03 April 2014
ANSER BY VINITA IS OK BUT ON ADDITION THINGH IS " tds liability is applicable if IMMEDIATED PRECEDING THE FINANCIAL YEAR " account was audited .
tds to compulosory for 2010-11 if after that if in FY 2010-11 account was not audited then no requirement of tds deduction from 2011-12.
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