For Sec 194I : TDS on Rent
An individul or HUF is required to deduct TDS on Rent if he is liable to get his accounts audited U/s 44AB.
The provision read as under
"Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such income by way of rent is credited or paid, shall be liable to deduct income-tax under this section."
Now the provision of Sec 44AB are as under;
"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 one crore rupees in any previous year; or
(b) carrying on profession shall, if his gross receipts in profession exceed 14[twenty-five] lakh rupees in any 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 section 44AEor 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 previous year; or
(d) carrying on the 15[business] shall, if the profits and gains from the 15[business] are deemed to be the profits and gains of such person under16[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 15[business]and his income exceeds the maximum amount which is not chargeable to income-tax in any 17[previous year,]
Following clause (e) shall be inserted after clause (d) of section 44AB by the Finance Act, 2016, w.e.f. 1-4-2017 :
(e) carrying on the business shall, if the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,
get his accounts of such previous year audited by an accountant before the specified date and 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."
Now, my query is as follow;
I'm an Individual and if in the previous FY I got my accounts Audited just couse my Imcome was lower then 8%.
Do i need to Deduct TDS on Rent Expences I'm paying in current year.
My Understanding is that only thoes Indiviual who needs to get its account Audited U/s 44AB under Sub Sec (a) and (b) i.e if T.O. or Gross Receipt exceed the respectives limites as stated and not if its fall under sub sec (d) i.e. couse of 44AD (Lower declaration of Income).
kindly advice in this regards.
CAclubindia
