Sec 194C TDS deduction applicability and 44AD provision

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This discussion explores the applicability of TAN numbers for individuals exceeding turnover limits but opting for non-audit clauses. It also delves into the implications of not deducting TDS when opting for presumptive taxation under Section 44AD, especially if turnover is below ₹2 crore. Finally, it addresses potential issues during assessment, including the requirement to provide expense details and the impact of disallowances on declared profits if TDS was applicable but not deducted.

Ronak Soni

Ronak Soni (Querist)
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26 July 2023 Dear Experts,

I have two queries with respect: -

1. If turnover of individual exceeds ₹ 1 crore in FY 22-23 and he wishes to opt for non-Audit clause of ₹ 10 crore after satisfying the criteria of 5% limit do that individual still needs to take TAN Number even if he is not liable to Audit?

2. In continuation to above question if TAN is required but the individual does not acquire TAN number for FY 22-23 and T/O of the individual is ₹ 1.8 crore for FY 22-23, and he opts for presumptive taxation u/s 44AD since T/O is below ₹ 2 crore wherein he declares 9% as profit (more than 6% as required u/s 44AD) does it cause anything if TDS not deducted since there are no specify declared u/s 44AD ?

3. Assessment opens up for FY 22-23 after few years and officer ask for basis of 9% profit (basically details of income and expense claimed) :-
a. Do we have to provide them the details of income and expense since for that FY we had
opted 44AD ?
b. Even if we provide them and officer founds that TDS was applicable on few expenses but
was not deducted by the assessee and disallows 30% expense will this 30% will get my
profit already declared u/s 44AD for that year ?