Knowledge Sharer
443 Points
Posted on 15 September 2021
For individual and HUF, the requirement of deducting tax arises only if the total sales, gross receipts or turnover from the business or profession carried on by him exceeds INR 1 crore in case of business or INR 50 lakh in case of profession during the financial year immediately preceding the financial year in which the payment on which tax is deductible. For e.g., In FY 2021-22, an individual is paying INR 100,000 towards professional fees. The said individual (i.e. payer) will required to deduct tax from the payment provided his (i.e. payer) total sales, gross receipts or turnover from the business or profession exceeds INR 1 crore / INR 50 lakhs (as the case may be) in FY 2020-21. In such an event, he should be required to obtain TAN