TDS DEDUCTION TURNOVER

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This discussion clarifies whether a client with a TAN number and a previous financial year turnover below £1 crore is liable for TDS (Tax Deducted at Source) deductions in the current financial year 2025-2026. Generally, individuals and HUFs not requiring audited accounts are exempt, but specific exceptions apply, such as TDS on rent exceeding £50,000 per month. It's important to check individual sections like 194C, 194H, etc., as they often stipulate turnover thresholds from the preceding year for TDS applicability.

pawan bahl

pawan bahl (Querist)

24 July 2025 MY CLIENT IS HAVING TAN NUMBER AND IN THE PREVIOUS FY THE TURNOVER IS BELOW ONE CRORE.
MY QUERY IS THAT WHETHER HE IS LIABLE FOR TDS DEDUCTION IN CURRENT FY 2025-2026 OR NOT.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

24 July 2025 Generally, individuals and HUFs whose books of accounts are not required to be audited are exempt from deducting TDS on most payments. However, there are specific exceptions, such as:

Deducting TDS on rent payments exceeding ₹50,000 per month (Section 194-IB).

Deducting TDS on payments for some of the services, rent, salary, etc., even if their accounts are not audited, if the payment exceeds specified limits.

pawan bahl

pawan bahl (Querist)

24 July 2025 What is included in ETC.
Whether any specific section.
Pl specify

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

24 July 2025 Every section specifies it separately. e.g. sec. 194 C H J etc. specifies for tax deduction only if aggregate turnover exceed 1 Crs. in preceding FY. similarly Other sections ....

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 September 2025 Good luck...

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