Practice
1205 Points
Joined June 2011
Samiksha,
In case of Individual or HUF, payer is liable for TDS provision if their sales,gross receipts or turnover exceeds the limit prescribed u/s 44AB in the immediately preceding financila year.
This provision apllies to Sec 194A(Interest on other than securities),194C( Contract),194H(Commission or Brokerage),194I(Rent) and 194J(Professional Services)
In short for other than above,TDS will be payable even if turnover in previous year do not exceeds 44AB limit.
Please also note that for each above section there are some exception provided where TDS is not liable to be paid even if previous year turnover exceeds 44AB limit.For example any service used or work done exclusively for personal purpose then no TDS will be payable.
For companies TDS should be paid even if in previous year they are under audit or not.
So before deducting TDS, read each section porperly.