TDS deduction requirement
This query is : Resolved
23 December 2024
Kidnly clarify the queries:
Is TDS required to be deducted in cases where 44AD / 44ADA is availed, where maintenance of books is not required?
Also is TDS required to be deducted on construction costs incurred by assessee? If yes, how will the disallowance apply, since this is not a revenue expenditure to make disallownce from profit?
Is TDS required to be deducted in cases where 44AD / 44ADA is availed, where maintenance of books is not required?
Also is TDS required to be deducted on construction costs incurred by assessee? If yes, how will the disallowance apply, since this is not a revenue expenditure to make disallownce from profit?
23 December 2024
Yes, TDS is required to be deducted even if the taxpayer avails of the presumptive taxation scheme under sections 44AD or 44ADA and is not required to maintain books of accounts. The provisions of TDS (sections 192 to 196D) are applicable if the specified conditions are met, such as payment exceeding the threshold limit.
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23 December 2024
TDS under Section 194C is not applicable to individuals and Hindu Undivided Families (HUFs) if they are not required to get their accounts audited under Section 44AB.
TDS is required to be deducted u/s. 194M on payments made to resident contractors or professionals for services rendered, including construction, if the payment exceeds ₹50,000 in a single transaction or ₹2,50,000 in aggregate during the financial year.
If an individual or HUF fails to deduct TDS under Section 194M or deducts TDS but fails to deposit it with the government, they may be liable to pay interest and penalty. The interest rate is 1% per month or part of the month on the amount of TDS that was not deducted or deposited. In addition, a penalty of up to Rs. 10,000 may be levied under Section 271C of the Income Tax Act, 1961.
TDS is required to be deducted u/s. 194M on payments made to resident contractors or professionals for services rendered, including construction, if the payment exceeds ₹50,000 in a single transaction or ₹2,50,000 in aggregate during the financial year.
If an individual or HUF fails to deduct TDS under Section 194M or deducts TDS but fails to deposit it with the government, they may be liable to pay interest and penalty. The interest rate is 1% per month or part of the month on the amount of TDS that was not deducted or deposited. In addition, a penalty of up to Rs. 10,000 may be levied under Section 271C of the Income Tax Act, 1961.
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