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Clarification of tds u/s 194j

Shubham Gupta (Software Engineer) (36 Points)

28 August 2015

Hi,
I has a question reg TDS u/s 194J. The following page (https://www.charteredclub.com/section-194j/) says that :

TDS is liable to be deducted by all class of persons except Individuals and HUF. However, if such Individual/HUF is liable to get his tax audit conducted under Section 44AB for the previous financial year, this exception won’t be applicable and they would also be required to deduct TDS under Section 194J.

What does Individual mean here ? If a person is not a registered company and he / she is getting more than 30K, should TDS be deducted ?

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2 Replies

CMA Poornima Madhava (CMA) (13097 Points)
Replied 28 August 2015

The deductor being individual and not liable for tax audit is not required to deduct tax at source while making the payment. But for the recipient even though tax is not deducted at source, such income is taxable. Hope this is clear.