194J TDS

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CA Anil Jain (Querist)
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28 November 2007
U/S 194I i.e.in rent whether Individuial/HUF is required to deduct tax (TDS)if they are covered under tax audit?

K V Subba Rao

K V Subba Rao (Expert)
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28 November 2007 Any individual or HUF who satisfies the following conditions is responsible for deduction of tax at source

(i) whose total sales turnover from business during the FY immediately preceding the FY in which rent is paid exceeds Rs 40 lacs; or

(ii)whose gross receipts from the profession during the FY immediately preceding the FY in which rent is paid exceeds Rs 10 lacs

(Source: Para 13.1.2 of 10th edition of Taxmann's TDS and Footnote in Page A-290 of 30th edition of Taxmann's Direct Taxes Ready Reckoner)

So the Act provides specific limits for this section. They may correspond with the limits for Tax Audit, but that is a different matter

KAUSTUBH M JOSHI

KAUSTUBH M JOSHI (Expert)
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28 November 2007 If individual/HUF is covered under tax audit & if it is not their first tax audit & the agreegate payment exceeds Rs 120000 then TDS is required to be made.

CA Anil Jain

CA Anil Jain (Querist)
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28 November 2007 Do u mean if once applicable than always applicable???

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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30 November 2007 01. As regards applicability of section 194I in case of deduction of taxes by HUF/Individual, 2nd proviso to the section is very much clear and acordingly if the gross receipt or turnover of the such assessees from business or profession was in exces of the pescribed limit during immediately preceding year, such HUF/Individual are liable u/s. 194I.