Tds deduction 1Cr or Audit 1st time

Irrespective of turnover, you are required to deduct TDS @ 1% or 2% depending upon the nature of payee, when payment made is in excess of 30000 or aggregate of payments exceeds 100000

Individuals & HUFs are not required to deduct Tds in non audit cases .


Tds provisions applicable only if the tax audit is applicable.


Suppose , if you are a common man & making payment to Doctor 100000/- & Lawyer 50000/- etc , there is no need to deduct tax.Every person can't have the TAN &it's not required also

Most of times we pay huge payments to doctors , still it's not required to deduct tax u/s 194J even if it is above 30k

For professional payments, turnover is to be considered. for contract payments there is no turnover threshold for TDS. Mr. Eswar reddy if you could quote relevant sections, I would feel obliged

Check even 194IB also for clarity..

There are specific provisions for non audit cases.General provisions are not applicable to Individuals & HUFs not liable to tax audit

That's what I want stress upon... where there's requirement it has been mentioned in the relevant sections but in respect of contract payments there's no turnover threshold ...if you check the earlier edition of act book, I can see where it has been clearly spelt under section 194c that liability to deduct arises only when the turnover exceeds 1 crore whereas now the same has been removed. it means there's no threshold limit. this is my opinion