194 I 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?

Mridula

Mridula (Expert)
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28 November 2007 Yes, If the Payee is individual & HUF than @ 15% +SC+EC and in any other case @ 20%+ SC+EC

CA Anil Jain

CA Anil Jain (Querist)
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28 November 2007
U mean for individual & HUF only when they are covered unde tax audit.

Chinmay

Chinmay (Expert)
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28 November 2007 TDS will be deducted whether or not they are covered under tax audit.

CA Anil Jain

CA Anil Jain (Querist)
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28 November 2007 No U are wrong at this time .In case of Individual & HUF TDS is Applicable only when they are covered under tax audit in the immediately preceeding F/Y in which tds is to be deducted.

Anil Jain
99111 84 802

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 limits specifically for this section. They may correspond with the limits for Tax Audit, but that is a different matter