Tax audit

This query is : Resolved

jigar samani (Querist)
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25 February 2014 Hello,

If any proprietor is falling under tax audit for the first time then TDS provisions are required to be fulfilled or not?? kindly give me justification with section.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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25 February 2014 TDS provision applies in next year, not in first year.

See, for example, explanation(i)(l)(B) of section 194C.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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25 February 2014 TDS provisions provide that an individual who was required to get his accounts audited in the PREVIOUS YEAR is required to deduct TDS.

An individual who becomes liable for tax audit is, say, 2013-14 is NOT required to deduct TDS in the FY 2013-14 because he was NOT required to get his accounts audited in the FY 2012-13.

He will be required to deduct TDS in the FY 2014-15.

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