Is firm covered u/s 44AD of I.T ACT,1961 is liable to deduct TDS?

This query is : Resolved

Akansha jain (Querist)
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30 May 2017 I have borrowed some funds from a party in the last PY. Now the party is mailing me again and again and asking to provide them TDS Certificate for the tax deducted on the interest liability. But, I haven't deducted any tax as I think that a firm covered u/s 44AD is not liable to deduct TDS. Please tell, whether I am correct or not? P.S: My firm was never get audited in sec 44AB & I don't have TAN No.

CA Mohit Kumar

CA Mohit Kumar (Expert)
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30 May 2017 Yes, you are bot liable to deduct TDS bacuse it applies for the audit 44AB

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 May 2017 TDS based on monetary limit specified in 44AB is applicable to Individuals and HUF only and not to partnership firm. Therefore, TDS provision applies to partnership firm whether covered under 44AB audit or not.