As Per Provisions of IT Act, Individual/HUF who are covered under tax audit, will deduct tax at source on all specified payments. And Persons other than individuals and HUF, will deduct tax at source on all specified payments.
Now Actual Query is..
(i) Does a non-auditable partnership firm/company has to deduct tds ?
(ii) Does an individual has to deduct tds on purchase of immovable property even if he is not covered under tax audit ?
i) Yes a Partnership firm being other than Individual and HUF, even if not liable for Audit under Income Tax Act,1961 will be liable for deduction of TDS under relevant sections.
ii) Yes even if an Individual is not liable for Audit under Income Tax Act,1961 still would be liable for deduction of Tax at source on purchase of Immovable property if the consideration for the same exceeds Rs. 50 Lakh u/s 194 IA of the Income Tax Act,1961.
Thank you.
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