A Individual assessee of 44AD earlier but in 31.03.18 Tax Audit (1st year).
Whether he is required to deduct TDS if applicable.
First year of Tax Audit for existing business:
An individual is exempted from deducting TDS under section 194A/C/H/I/J, if tax audit was not applicable during the F.Y. immediately preceding the F.Y. in which income is paid/credited.
First year of Tax Audit for new business:
Tax audit was not applicable during the F.Y. immediately preceding the F.Y. in which income is paid/credited, as the business was not in existence. Hence, liability to deduct TDS in case of aforesaid sections does not arise even if the turnover crosses the threshold specified u/s 44AB during the first year of business.
Reference:
- Proviso to Sec. 194A(1)
- Explanation(i)(l)(B) to Sec. 194C(7)
- Second Proviso to Sec. 194H
- Second Proviso to Sec. 194I
- Second Proviso to Sec. 194J(1)
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