21 February 2011
1) Is it correct that in the FY 2010-11, the turnover limit has been increased to INR 60 lakhs for applicability of tax audit for proprietorship firms ?
2) Also if the firm exceeds INR 60 lakhs turnover in Feb 2011, then whether TDS provisions become applicable for FY 2010-11 also
21 February 2011
Where the payer is an individual or HUF whose accounts are required to be audited as per the provisions of section 44AB of the Act for the immediately preceding financial year, he has to deduct tax at source.
If your accounts are subject to tax audit for the assessment year 2011-12 under section 44 AB of the Income-tax Act, 1961, your are liabile to deduct TDS on your payment for the assessment year 2012-13.
So in your case TDS provision will be applicable from Fy 2011-12
21 February 2011
Agree with Mr Sanjay Gupta.. TDS provisions will be applicable from FY 2011-12 and not from FY 2010-11......provided you firm not under Tax Audit in the Assessment Year 2010-11 (PY 2009-10)
CAclubindia
