TDS applicability

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Aarti

Partner at Manoj daga & co

41 Points Joined September 2009

Assesee is an individual and was having below 1 cr turnover in last financial year. this current year assesee has exceeded its turn over limit more than 2 cr in first quarter itself. He is also making payment to contractor for jobwork, payment for salary, commission. whether TDS u/s 194C 194H, 192 is applicable to assesee? whether he is require to deduct TDS?
As per section 192C, TDS is applicable only if assesee having tax audit in last financial year and 194H has prescribed the turnover limit.

Replies (3)

CA ABHAY GUPTA

Practice

3235 Points Joined August 2009

Since the last year turnover was 1 crore no need to deduct TDS in the current FY while you made payment to contractor or commission or professional income but such thing is not mentioned in sec 192 thus TDS need to be deducted on salary payment as per slab rate

sabyasachi mukherjee

28122 Points Joined May 2017

Tds has seperate threshold limit.
Adhere to that.

Ajay

CA Job

512 Points Joined March 2007

Dear Aarti

In the case of the individual assessee, he need not deduct TDS under Section 194C and 194H for FY 2020-21 if his turnover in the preceding financial year (FY 2019-20) does not exceed Rs.1 Crore.

However, being an employer, he will have to make TDS on salary irrespective of his turnover in the preceding year as long as the amount payable to the employee(s) is above the exemption limit.

Regards

Ajay