Sreejesh V K (ICMA Final Student) (147 Points)
25 February 2010Hi All,
I m going to construct a new house for self use. During construction if I pay more than 50,000 to my contractor, is this liable for TDS??
Max Payne
(employed)
(2574 Points)
Replied 25 February 2010
No need Sreejesh.
Tax Deduction is not required if the payments are for personal purpose by individual and HUF....
You can see the provision in section 194C.
saranraj
(CA FINAL)
(419 Points)
Replied 25 February 2010
INDIVIDUAL OR HUF HAVE TO DEDUCT TDS IF HE/SHE IS SUBJECT TO TAX AUDIT DURING FINANCIAL YEAR IMMEDIATELY PRECEDING THE PREVIOUS YEAR.
FOR EG.
FINANCIAL YEAR 2009-10
ASSESSMENT YEAR 2010-11
IF YOU ARE PAYING AMOUNT DURING 2010-11, YOU MUST DEDUCT TDS ONLY IF YOU WERE SUBJECT TO TAX AUDIT DURING 2008-09.
SRINIVAS SRIRAJ
(Chartered Accountant)
(130 Points)
Replied 25 February 2010
"[Payments to contractors.
71194C. (4) No individual or Hindu undivided family shall be liable to deduct income-tax on the sum credited or paid to the account of the contractor where such sum is credited or paid exclusively for personal purposes of such individual or any member of Hindu undivided family."
In the light of the above extract from the Income Tax Act, 1961, Tax need not be deducted at source from Contract (Personal) payments made by an Individual or HUF
CA Mohit Agrawal
(Chartered Accountant)
(371 Points)
Replied 26 February 2010
ya i agree with sriraj sir its absolutely correct
Radhakrishnan K.V.
(Joint Registrar of Co-operative Societies (Rtd.))
(1072 Points)
Replied 05 December 2012
ANKUR
(student)
(22 Points)
Replied 03 July 2018
It seems there is a difference of opinion on this matter. Please check following discussion on in this forum:
https://www.caclubindia.com/experts/tds-on-work-contract-for-building-1264624.asp
Regards,
Mr. Ankur
CAclubindia
