TDS ON RENT
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 June 2010
DEAR SIRS,
OUR COMPANY IS A PROPRIETOR CONCERN WE ARE PAYING MONTHLY RENTAL OF 68,OOO TO OUR WAREHOUSE LANDLORD. HIS COMPANY ALSO A PROPRIETOR CONCERN. BOTH CO., ARE PROPRIETOR CONCERN ANY TDS ON RENTAL. IF THERE HOW MUCH, BOTH OF US NOT REGISTERED FOR TDS.
PLEASE GIVE ADIVSE US TO ACT
WITH REGARRDS
KOMES
OUR COMPANY IS A PROPRIETOR CONCERN WE ARE PAYING MONTHLY RENTAL OF 68,OOO TO OUR WAREHOUSE LANDLORD. HIS COMPANY ALSO A PROPRIETOR CONCERN. BOTH CO., ARE PROPRIETOR CONCERN ANY TDS ON RENTAL. IF THERE HOW MUCH, BOTH OF US NOT REGISTERED FOR TDS.
PLEASE GIVE ADIVSE US TO ACT
WITH REGARRDS
KOMES
16 June 2010
Indiviuals not covered under tax audit u/s.44AB no need to deduct tds on payment made by them. so please check your status with sec.44AB
16 June 2010
AGREE WITH EXPERT
16 June 2010
[Audit of accounts of certain persons carrying on business or profession.
44AB. Every person,—
(a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds 19[sixty lakh rupees] in any previous year 2[***]; or
(b) carrying on profession shall, if his gross receipts in profession exceed 20[fifteen lakh rupees] in any 3[previous year; or
(c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under 16[section 44AE] 4[or section 44BB or section 44BBB], as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any 17[previous year; or],]
18[(d) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AD and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his business and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,]
5[***] get his accounts of such previous year 6[***] audited by an accountant before the specified date and 7[furnish by] that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed :
8[Provided that this section shall not apply to the person, who derives income of the nature referred to in 9[***] section 44B or 10[section 44BBA], on and from the 1st day of April, 1985 or, as the case may be, the date on which the relevant section came into force, whichever is later :
Provided further that] in a case where such person is required by or under any other law to get his accounts audited 11[***], it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and 12[furnishes by] that date the report of the audit as required under such other law and a further report 13[by an accountant] in the form prescribed under this section.
Explanation.—For the purposes of this section,—
(i) "accountant" shall have the same meaning as in the Explanation below sub-section (2) of section 288;
14[(ii) "specified date", in relation to the accounts of the assessee of the previous year relevant to an assessment year, means the 15[30th day of September] of the assessment year.]]
-----------------------------------
Notes :-
1. Inserted by the Finance Act, 1984, w.e.f. 1-4-1985.
2. Words "or years relevant to the assessment year commencing on the first day of April, 1985, or any subsequent assessment year" omitted by the Finance Act, 1988, w.e.f. 1-4-1989.
3. Substituted for "previous year," by the Finance Act, 1997, w.e.f. 1-4-1998.
4. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004.
5. Words "or years relevant to the assessment year commencing on the first day of April, 1985, or any subsequent assessment year," omitted by the Finance Act, 1988, w.e.f. 1-4-1989.
6. Words "or years" omitted by the Finance Act, 1988, w.e.f. 1-4-1989.
7. Substituted for "obtain before" by the Finance Act, 1995, w.e.f. 1-7-1995.
8. Substituted for "Provided that" by the Finance Act, 1992, w.r.e.f. 1-4-1985.
9. Words "section 44AC or" omitted by the Finance Act, 1995, w.e.f. 1-7-1995.
10. Substituted for "section 44BB or section 44BBA or section 44BBB" by the Finance Act, 2003, w.e.f. 1-4-2004.
11. Words "by an accountant" omitted by the Finance Act, 1985, w.e.f. 1-4-1985.
12. Substituted for "obtains before" by the Finance Act, 1995, w.e.f. 1-7-1995.
13. Inserted by the Finance Act, 2001, w.e.f. 1-4-2001.
14. Substituted by the Finance Act, 2001, w.e.f. 1-4-2001. Prior to its substitution, clause (ii), as substituted by the Finance Act, 1988, w.e.f. 1-4-1989 and later on amended by the Finance Act, 1994, w.e.f. 1-4-1994, read as under :
'(ii) "specified date", in relation to the accounts of the previous year relevant to an assessment year means,—
(a) where the assessee is a company, the 30th day of November of the assessment year;
(b) in any other case, the 31st day of October of the assessment year.'
15. Substituted for "31st day of October", by the Finance Act, 2008, w.e.f. 1-4-2008.
16. Substituted vide Finance (No. 2) Act, 2009 with effect from 1-4-2011, before it was read as, "section 44AD or section 44AE orsection 44AF"
17. Substituted vide Finance (No. 2) Act, 2009 with effect from 1-4-2011, before it was read as, "previous year"
18. Inserted vide Finance (No. 2) Act, 2009 with effect from 1-4-2011
19. In clause (a), for the words "forty lakh rupees", the words "sixty lakh rupees" has been substituted vide Finance Act, 2010 w.e.f. 01.04.2011.
20. In clause (b), for the words "ten lakh rupees", the words "fifteen lakh rupees" shall be substituted vide Finance Act, 2010 w.e.f. 01.04.2011.
As per section 44 AB, Every person i.e it may individual or firm or company .
i.e. IF your proprietor concern turnover is 40 lacs in current fy ( 60 L from 1/04/2011) then you are covered u/s 44AB , i.e tax audit, you have to deduct tds on rent .
44AB. Every person,—
(a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds 19[sixty lakh rupees] in any previous year 2[***]; or
(b) carrying on profession shall, if his gross receipts in profession exceed 20[fifteen lakh rupees] in any 3[previous year; or
(c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under 16[section 44AE] 4[or section 44BB or section 44BBB], as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any 17[previous year; or],]
18[(d) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AD and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his business and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,]
5[***] get his accounts of such previous year 6[***] audited by an accountant before the specified date and 7[furnish by] that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed :
8[Provided that this section shall not apply to the person, who derives income of the nature referred to in 9[***] section 44B or 10[section 44BBA], on and from the 1st day of April, 1985 or, as the case may be, the date on which the relevant section came into force, whichever is later :
Provided further that] in a case where such person is required by or under any other law to get his accounts audited 11[***], it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and 12[furnishes by] that date the report of the audit as required under such other law and a further report 13[by an accountant] in the form prescribed under this section.
Explanation.—For the purposes of this section,—
(i) "accountant" shall have the same meaning as in the Explanation below sub-section (2) of section 288;
14[(ii) "specified date", in relation to the accounts of the assessee of the previous year relevant to an assessment year, means the 15[30th day of September] of the assessment year.]]
-----------------------------------
Notes :-
1. Inserted by the Finance Act, 1984, w.e.f. 1-4-1985.
2. Words "or years relevant to the assessment year commencing on the first day of April, 1985, or any subsequent assessment year" omitted by the Finance Act, 1988, w.e.f. 1-4-1989.
3. Substituted for "previous year," by the Finance Act, 1997, w.e.f. 1-4-1998.
4. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004.
5. Words "or years relevant to the assessment year commencing on the first day of April, 1985, or any subsequent assessment year," omitted by the Finance Act, 1988, w.e.f. 1-4-1989.
6. Words "or years" omitted by the Finance Act, 1988, w.e.f. 1-4-1989.
7. Substituted for "obtain before" by the Finance Act, 1995, w.e.f. 1-7-1995.
8. Substituted for "Provided that" by the Finance Act, 1992, w.r.e.f. 1-4-1985.
9. Words "section 44AC or" omitted by the Finance Act, 1995, w.e.f. 1-7-1995.
10. Substituted for "section 44BB or section 44BBA or section 44BBB" by the Finance Act, 2003, w.e.f. 1-4-2004.
11. Words "by an accountant" omitted by the Finance Act, 1985, w.e.f. 1-4-1985.
12. Substituted for "obtains before" by the Finance Act, 1995, w.e.f. 1-7-1995.
13. Inserted by the Finance Act, 2001, w.e.f. 1-4-2001.
14. Substituted by the Finance Act, 2001, w.e.f. 1-4-2001. Prior to its substitution, clause (ii), as substituted by the Finance Act, 1988, w.e.f. 1-4-1989 and later on amended by the Finance Act, 1994, w.e.f. 1-4-1994, read as under :
'(ii) "specified date", in relation to the accounts of the previous year relevant to an assessment year means,—
(a) where the assessee is a company, the 30th day of November of the assessment year;
(b) in any other case, the 31st day of October of the assessment year.'
15. Substituted for "31st day of October", by the Finance Act, 2008, w.e.f. 1-4-2008.
16. Substituted vide Finance (No. 2) Act, 2009 with effect from 1-4-2011, before it was read as, "section 44AD or section 44AE orsection 44AF"
17. Substituted vide Finance (No. 2) Act, 2009 with effect from 1-4-2011, before it was read as, "previous year"
18. Inserted vide Finance (No. 2) Act, 2009 with effect from 1-4-2011
19. In clause (a), for the words "forty lakh rupees", the words "sixty lakh rupees" has been substituted vide Finance Act, 2010 w.e.f. 01.04.2011.
20. In clause (b), for the words "ten lakh rupees", the words "fifteen lakh rupees" shall be substituted vide Finance Act, 2010 w.e.f. 01.04.2011.
As per section 44 AB, Every person i.e it may individual or firm or company .
i.e. IF your proprietor concern turnover is 40 lacs in current fy ( 60 L from 1/04/2011) then you are covered u/s 44AB , i.e tax audit, you have to deduct tds on rent .
16 June 2010
IF your proprietor concern turnover is 40 lacs in current fy ( 60 L from 1/04/2011) then you are covered u/s 44AB , i.e tax audit, you have to deduct tds on rent
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