Income tax return due date fy 17-18

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 May 2018 Dears,

If Partnership Firm audited u/s 44AD then due date of Income Tax Return for Individual Partners is 31-July-2018 or 30-Sep 2018?

Thanks for reply

Expert : Anonymous

Expert : Anonymous (Expert)

26 May 2018 If under Tax Audit then due date is 30th September 2018...

**Tax Audit u/s 44AB...

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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26 May 2018 30-09-2018 per explanation 2(a)(iii) of section 139(1).

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2018 Thanks Warrier Sir, i have second doubt that....If partnership firm Audit u/s 44AD (Turnover less then 2cr) in previous financial year then TDS deduction liablity applicable to Firm in Current FY.?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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26 May 2018 Audit based TDS deduction is applicable to 'individuals' and not for partnership
firm's. per proviso to section 194A(1).

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2018 sorry sir my mistake..kindly refere individual /huf in place of Partnership firm.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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31 July 2024 Under Section 44AD of the Income Tax Act, 1961, a taxpayer engaged in a business (other than the business of plying, hiring, or leasing goods carriages) can opt for the presumptive taxation scheme, provided their turnover or gross receipts do not exceed ₹2 crores. Here's a detailed explanation regarding the applicability of TDS (Tax Deducted at Source) provisions to a firm in the current financial year if the individual/HUF opted for audit under Section 44AD in the previous financial year:

### Applicability of TDS Deduction Liability:

1. **Audit under Section 44AD:**
- If an individual/HUF had opted for presumptive taxation under Section 44AD in the previous financial year but underwent an audit because their turnover was less than ₹2 crores and they declared profit less than the prescribed limit (8% or 6% of turnover/gross receipts), then they would be subject to audit requirements under Section 44AB.

2. **Implications for TDS Deduction:**
- TDS deduction liability is generally linked to the turnover or gross receipts of the entity and the applicability of audit provisions under Section 44AB.
- If an individual/HUF is subject to a tax audit under Section 44AB in the previous year, certain TDS provisions may become applicable in the subsequent year, depending on the nature of payments made by the entity.

3. **TDS Provisions for Businesses and Firms:**
- Specific TDS provisions become applicable if the entity crosses specified thresholds for payments such as professional fees, contract payments, rent, etc.
- Under Section 194A, 194C, 194H, 194I, and 194J, if the turnover exceeds the prescribed limits, the entity has to deduct TDS on respective payments.

4. **Current Financial Year TDS Liability:**
- For an individual/HUF firm to have TDS deduction liability, the key factor is whether the entity was subject to a tax audit under Section 44AB in the previous financial year.
- Since the firm was audited under Section 44AD in the previous year, it implies that the audit was conducted due to lower profit declaration rather than exceeding the turnover limit.

### Conclusion:
If the individual/HUF was subject to a tax audit under Section 44AB in the previous financial year due to lower profit declaration under Section 44AD, the TDS deduction liability would be applicable in the current financial year for specific transactions if they meet the respective threshold limits for payments.

### Steps to Determine TDS Liability:

1. **Check the previous year's audit status:**
- Confirm if the audit was conducted under Section 44AB due to opting out of Section 44AD.

2. **Identify TDS applicability:**
- Identify the nature of payments made by the firm in the current financial year (salaries, professional fees, rent, etc.).

3. **Verify thresholds:**
- Verify if the payments exceed the prescribed thresholds under relevant TDS sections (e.g., ₹30,000 for professional fees under Section 194J, ₹50,000 for rent under Section 194I).

4. **Deduct TDS accordingly:**
- If thresholds are met, deduct TDS as per applicable rates and remit the same to the Income Tax Department.

If the audit in the previous financial year was due to opting out of Section 44AD (lower profit declaration), then the firm is liable to deduct TDS on relevant payments in the current financial year as per the prescribed provisions and thresholds.

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