I want to know the circular related to tds not applicable for the individual to whom First time Audit U/s 44Ab of income tax act 1961 applicable
Dhawal Mohnot
(Practicing)
(449 Points)
Replied 07 January 2011
can you please be more precise !!!!!
Cicular No. 8/2002 dated 27/08/2002
Individuals and Hindu Undivided Families to deduct tax in cases where total turnover or gross receipts exceed the specified limit under section 44AB
67.1 Individuals and Hindu Undivided Families are not required to deduct tax at source under the existing provisions of sections 194A, 194C, 194H, 194 I and 194J.
67.2 Individuals and Hindu Undivided Families whose sales, turnover or gross receipts of the business or profession exceed rupees forty lakhs or rupees ten lakhs, as the case may be, are required to maintain books of account and other documents and get their accounts audited.
67.3 The Act has amended the provisions of the above sections to provide that individuals or Hindu Undivided Families, whose total sales, turnover or gross receipts from the business or profession carried on by them exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which the income is to be credited or paid, shall be liable to deduct income tax under the relevant provisions of the aforementioned sections.
67.4 These amendments will take effect from 1st June, 2002.
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