TDS provision applicable

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This discussion clarifies whether TDS provisions apply to individuals trading in F&O if their turnover exceeds 1 crore in FY 21-22. While F&O trading itself doesn't typically have TDS deductions, the applicability arises from other business expenditures or if interest is paid on loans. Specifically, if your business turnover exceeds 1 crore in the preceding financial year, you may be liable to deduct TDS on payments under Section 194A, unless the interest paid is below £5,000.

Harsh Chaudhary

Harsh Chaudhary (Querist)

08 March 2023 IF Assessee is Trading In FY 21-22, and Turnover From Option Exceeds 1 Crore then TDS Provision Is Applicable On Him or Not?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

08 March 2023 Yes, but is there any business other than F&O? As in F&O trade there is no provision for any TDS deduction.

Harsh Chaudhary

Harsh Chaudhary (Querist)

08 March 2023 No Business Other Than F&O

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

08 March 2023 The TDS provisions are applicable only when you make any payments related to business and not personal.
In case of F&O business check for any such expenditures liable to TDS deduction.

Harsh Chaudhary

Harsh Chaudhary (Querist)

08 March 2023 taken loan and interest payment

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

08 March 2023 Yes, an individual or a HUF, whose total sales, gross receipts or turnover from the business or profession carried on by him/it exceeds Rs. 1 crore in case of business and Rs. 50 lakhs in case of a profession during the financial year immediately preceding the financial year in which the aforesaid amount is credited or paid, shall be liable to deduct tax under section 194A. No TDS if interest paid is below Rs. 5000/-

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