Query regarding deduction of tds

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Ankur

106 Points Posted on 12 August 2011

Hello friends,

as it is stated in section 194 I that for payment of rent exceeding Rs. 120000 p.a. , TDS should be deducted but this provision does not apply to an individual whose turnover/gross receipts in the year immediately preceding the relevant previous year does not exceeds the limits specified under section 44AD.

NOw as per above, for the applicability of this provision in the A.Y. 2011-12, the turnover of the year ending on 31st march 2010 is to be compared with limits of 44AD. now the question is that what limits will be taken into account while comparing the turnover , the limits which are currently applicable i.e. RS. 60 lakh / 15 lakh or the limits which were applicable in the previous year i.e. Rs. 40 lakh/ RS. 10 lakh.????????

plz help

Replies (4)

U S Sharma

glidor@gmail.com

21670 Points Posted on 13 August 2011

TDS and 44AD both are diff fields and nowhere 44AD intrupts with TDS provisions

TDS should be deducted by the payee except the individual /HUF who were not covered by 44AB (Tax audit) in previous year.

44AB is turnover based 40/10 Lacs for AY 2010-11 (60/15 lacs from AY 2011-12), however in certain cases where the individual / HUF has been entitled to get his books audited u/s 44AB without crossing the limit even ( for lower income declaration even) in previous year, he is entitled to deduct TDS in current year.