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TDS applicability

31 May 2019

A person engaged in business whose gross receipts, turnover exceeds 1 cr, is liable to audit u/s 44AB and hence 194C will be applicable.

However, if a person opts for presumptive taxation u/s 44AD the limit is 2 cr and further is not required to get audited as per section 44AB. As such, 194C will be applicable to such person or not?

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (167505 Points)
Replied 31 May 2019

It will definitely be applicable, but in next financial year.

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Himanshu Tripathi (7 Points)
Replied 01 June 2019

Urgent reply will be appreciated

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (167505 Points)
Replied 02 June 2019

Already replied.

TDS liability arises in next/following year, when gross turn over exceeds 1 Cr in PY, even though income of PY declared under presumptive assessment.

Himanshu Tripathi (7 Points)
Replied 02 June 2019

As per my knowledge, and as per recent amendment 44AB does not apply to such person who file Income tax on the basis of sub section 1 of 44AD.

Further, as per 194C it is applicable to those individuals who is liable to audit u/s 44AB

As such, I think there will be no requirement to deduct TDS in current year as well as following years