Query in TDS Challan No.281

This query is : Resolved

Guest

Guest (Querist)

08 October 2009 A (DEDUCTOR) is an individual.
A pays rent to B (DEDUCTEE), an individual for which TDS shall apply.
A makes payment through TDS Challan No.281 under CODE NO.0021 - NON-COMPANY DEDUCTEES.

Deductor A deducts TDS on Deductee B's rent and uses the above mentioned challan under the code no.0021.

Is it right that B should be called as NON-COMPANY DEDUCTEE ?

Please confirm the understanding.

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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09 October 2009 Yes B is Non Company Deductee ( Being Individual)

However since A ( deductor ) is individual he is only liable to deduct TDS if he is liable to Tax Audit under section 44AB in the last F.Y.