Tax Compliance Inquiry: TAN and TDS Requirements

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This discussion clarifies whether a Tax Deduction and Collection Account Number (TAN) and Tax Deducted at Source (TDS) are mandatory even if you're not subject to a tax audit. Generally, individuals and HUFs with business turnover below certain thresholds may be exempt. However, specific situations, such as rent payments exceeding £50,000 monthly or property purchases of £50 lakhs or more, still require TDS deduction, regardless of audit liability.

Mahesh S M

Mahesh S M (Querist)
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01 June 2024 Is it mandatory to obtain a TAN and deduct TDS even if I am not subject to a tax audit?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 June 2024 No TDS has to be deducted if the person making the payment is an individual or HUF whose sales from business or profession doesn’t exceed Rs.1 crore or Rs.50 lakhs, respectively.

However, there are instances like in case of rent payments made by individuals and HUF exceeding Rs 50,000 per month, are required to deduct TDS @ 5% even if the individual or HUF is not liable for a tax audit.
All persons are mandatorily required to deduct u/s. 194IA for any property purchased for Rs. 50 lakhs or above.
The list is not exhaustive.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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04 September 2024 Good Luck.

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