Question regarding tds

According to me, he is required to get his accounts audited for only 1 business whose turnover exceeds 1 cr.
and he is not required to deduct tds on commission expense.

1. In case of trading business, tax audit is applicable

2. In case of commission business, tax audit is applicable if turnover/GROSS RECEIPTS in business for the PY relevant to the AY exceed/exceeds Rs.1 crore

So see if gross receipts are also within the limit, then 44AB is not applicable.

Exemption from TDS (on certain payments) is appliable for the payee if the individual/HUF whose books are not required to be audited u/s 44AB in the immediately preceding FY. So if in FY 14-15, 44AB is not applicable, then no need to deduct TDS in FY 15-16 on certain payments.

well answered by Poornima

As per the guidance note, if a person (individual) is carrying on more than one business, then for the purpose of determining applicability of tax audit requirement, the turnover of all the business is required to be clubbed as requirement is to be checked assessee wise not business wise. Had the two businesses been carried out by way of 2 legally distinct entities, then turnover would not be required to be merged. Assuming, in your case, that person is carrying out business as individual, Tax Audit would be required to be conducted for both the businesses. Since, Tax Audit is required, it shall be required to comply with TDS compliances too. Hope this helps.

Relevant extract from Guidance Note: 5.21 It may, however, be noted that in cases where the assessee carries on more than one business activity, the results of all business activities should be clubbed together. In other words, the aggregate sales, turnover and/or gross receipts of all businesses carried on by an assessee would be taken into consideration in determining whether the prescribed limit (Presently Rs. 1 crore w.e.f. A.Y. 2013-14) as laid down in section 44AB has been exceeded or not. However, where the business is covered by section 44B or 44BBA turnover of such business shall be excluded. Similarly, where the business is covered by section 44AD or 44AE and the assessee opts to be assessed under the respective sections on presumptive basis, the turnover thereof shall be excluded. So far as a partnership firm is concerned, each firm is an independent assessee for purposes of Income-tax Act. Therefore, the figures of sales of each firm will have to be considered separately for purposes of determining whether or not the accounts of such firm are required to be audited for purposes of section 44AB.