Tds applicability

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Dhaval (Querist)
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07 February 2012 I have little idea that a person doing proprietary business to whom tax audit not applicable is also not required to deduct tax from payments.
Is this true?
Please explain with section number.

CA. Hari Kishan

CA. Hari Kishan (Expert)
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07 February 2012 Provision of TDS shall not apply to a assessee who does not require to get his account audited during the previous year.. the section you could refer are 194A, 194C, 194H, 194I, 194J...

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 February 2012 Who shall deduct tax at source?

Every person responsible for making payment of nature covered by TDS provisions of Income Tax Act shall be responsible to deduct tax.
However in case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of individual and HUF, only if the turnover or professional receipt exceeds sum of Rs. 40 lakh or Rs. 10 lakh respectively (the limits will be Rs.60 Lakh or Rs. 15 Lakh respectively w.e.f. 01.04.2010) in previous year, he is required to deduct tax at source.

So if tax audit is applicable in respect of Fy 2010-11 you need to deduct TDS from Fy 2011-12.

Dhaval

Dhaval (Querist)
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08 February 2012 Thanx both of you for your reply.

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