Tds on rent for proprietor

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2013 A proprietor had a turnover of 30 Lacs in F.Y. 2012-13. This year i.e. F.Y. 2013-14 he is expecting his turnover to reach 1 crore. Till date i.e. April 2013 to aug 2013 his turnover is 42 lacs.

He pays rent of Rs 50,000 p.m. to a company.
Now,
1)Is he liable to deduct TDS on rent, NOW?
2)If not now then should he deduct TDS
i) from the month (say January) when is turnover reaches 1 crore (as he become applicable for TAX audit), OR
ii) From Next Financial year after his turnover reaches 1 crore i.e. from April 2014 and onwards.???

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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29 August 2013 1. TDS is required to be deducted by an individual if he was liable to tax audit in the PREVIOUS FINANCIAL YEAR.

Since in the FY 2012-13 he was NOT liable to tax audit, he is NOT required to deduct TDS in the year 2013-14 even if his receipts exceed Rs. 1 crore.

2. In case his receipts exceed Rs. 1 crore in the year 13-14 then he is required to deduct TDS in the year 2014-15.

Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2013 Thank You for sharing your knowledge.

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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11 October 2013 You are welcome. You should use the thanks button to convey your thanks. If you feel I have satisfactorily answered your query, please nominate me.