01 October 2012
dear expert please tell me if individual are covered u/s 44ab in FY 2009-10, then in Fy 2010-11 he is not covered, then in Fy 2011-12 he agains covered under tax audit provision, so he requires to deduct tds in fy 2011-12 on payments which are subject to tds?????? or he is not required becouse py turnover is below tax audit limit.... & also tell me what if he have tan no. in fy 2010-11?
02 October 2012
In my view, TDS provisions are applicable for an individual or HUF only if that person was subject to tax audit u/s 44AB in the immediately preceeding financial year.
In your case, since you were not covered under section 44AB in the financial year 2010-2011, TDS provisions are not applicable for FY 2011-12.
Only having a TAN number does not make a person liable to deduct tax at source.