Audit u/s 44AD and TDS Provisions

3733 views 7 replies

Hi,

As per provisions of Section 44AD of Income Tax Act, if assessee(Individual/HUF) is not shown 8% profit of sales/gross receipts, he will be liable for sudit u/s 44AB.

My question is that whether TDS Provisions will be applicable on next Financial Year?

Replies (7)

Yes in my view he will be liable to comply with the provisions of TDS

Yes , Assessee is liable for deduction of TDS as Bcos he will be liable for audit U/Sec 44AB.

Dear Mohit & Mrimoy


refer provisions of TDS,

9[Provided that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such interest is credited or paid, shall be liable to deduct income-tax under this section.]

from above it is clear that no provisions of TDS Apply..

I have referred after post my query.

Dear All

If any assessee fails to comply with the TDS provisions even an assessee covered u/s 44AD, he has to face the consequences as contemplated u/s 201 of IT Act, 1961

Best Wishes

Sathikonda

If the assessee want to declare lesser profit than the preseribed u/s 44Ab then he has to get is books to be audited by the chartered accountant.

TDS provision speaks about the 44AB audit, if the turnover is more 40 lakhs upt to the year 2010, from 2011 the turnover limit is 60 lakhs.

Based on the above section, i conclude that, assessee need not to deduct TDS

 

Yes liable to comply with the provisions of TDS

 

Mr.Hardik Patel is correct,

Please read the provision properly

If you still have a doubt, kindly take the opinion from the chartered Accoutant.

If you want you can contact me.

Srikanth,

 +91 9972592929


CCI Pro

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