- As per the provisions of the Income Tax Act, an individual is liable to deduct tax on certain payments, in case his turnover / gross receipts during the year immediately preceding the year in which the payments are to be made, exceeds the limits prescribed under section 44AB of the Act. For this purpose, he applied for the TAN. Now, the point is whether this liability to deduct tax is permanent or differ from year to year depending upon the quantum of the turnover/ gross receipts ? In other words, what will be the provisions in case his turnover does not exceed the limits prescribed u/s 44AB during the current year. Shall he be liable to deduct tax on payments made / credited in the financial year following the current year ? if no, then whether he will have to surrender the TAN ? If he surrenders the TAN and again in future he becomes liable to deduct tax then again he will have reapply for the TAN ? Please suggest the correct provisions.
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