Brokerage income - TDS thereon

Dear All,

Is it possible that the firm has capitalised the brokerage and hence not deducted TDS? are the provisions of TDS guiding only to expenses or is it specific to payments irrespective of their accounting treatments?

Dear Sir,

You are right, TDS provisions are specific to payments irrespective of their accounting treatments.

If you read the provisions you will find that the section has used the term "payment", which covers all type of expenditures whether revenue or capital.

As it is an individual ,TDS Has to be deducted only if individual's Gross receipts exceeds 40,00,000/-,

Is that individual is covered under tax audit.?

the receiver of brokerage income is individual not having gross receipts exceeding 40 lacs... but the payor is firm where no such limits have been specified.. Does it really matter in any provisions whether the receiver is covered under Tax Audit for deductions of TDS? it is usually for deductor individuals where such limit has to be reckoned...