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Tds applicability

Sayantan (Student) (50 Points)

08 February 2017

Will an individual, who was liable for tax Audit in AY 2016-17, be liable to deduct TDS in subsequent AY even though he is not liable for tax Audit in that subsequent year?

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Sanjay S (Chartered Accountant) (1375 Points)
Replied 08 February 2017

An Individual or an H.U.F. is not liable to deduct Tax on payment except where the individual or H.U.F. is carrying on a business/profession where accounts are required to be audited u/s 44AB, in the immediately preceding financial year.

Hence, an individual shall be liable to make TDS on payments in AY 2017-18 only if he had been subject to Tax Audit in AY 2016-17. (Eventhough he is not liable to Tax Audit in AY 2017-18)